What could McDonald’s do to create barriers that would prevent others from entering the markets and would make it harder for remaining hamburger shops to remain in the market? The third question assumes the previous 2 questions I submitted were answered. in order to answer this question, you need to know the marginal revenue and marginal costs. + how much should McDonald’s charge for its hamburgers to maximize profit?
What could McDonald’s do to create barriers that would prevent others from entering the markets and would make it harder for remaining hamburger shops to remain in the market?
The third question assumes the previous 2 questions I submitted were answered. in order to answer this question, you need to know
the marginal revenue and marginal costs. + how much should McDonald’s charge for its hamburgers to maximize profit?
|
McDonald’s |
||||||||
|
Quantity
|
Variable Costs |
Fixed Costs |
Total Costs |
Price |
Total Revenue |
Profit |
Marginal Costs |
Marginal Revenue |
|
1,000 |
500 |
5,000 |
5,500 |
4.00 |
$4,000 |
-1,500
|
|
|
|
2,500 |
1,000 |
5,000 |
6,000 |
3.50 |
$8,750 |
2,750
|
0.33 |
3.17 |
|
4,000 |
1,400 |
5,000 |
6,400 |
3.00 |
$12,000 |
5,600 |
0.27 |
2.17 |
|
9,000 |
2,400 |
5,000 |
7,400 |
2.00 |
$18,000 |
10,600
|
0.20 |
1.2 |
|
13,000 |
3,400 |
5,000 |
8,400 |
1.00 |
$13,000 |
4,600
|
0.25 |
-1.25 |
|
20,000 |
10,000 |
5,000 |
15,000 |
0.50 |
$10,000 |
-5,000
|
0.94 |
-0.43 |
|
45,000 |
31,250 |
5,000 |
36,250 |
0.30 |
$13,500 |
-22,750
|
0.85 |
0.14 |
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