Managerial economics due by 07/01

 

Please read chapters One & Two of your textbook and demonstrate your understanding of The Fundamentals of Managerial Economics by answering the following questions:

Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smartphones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to $145,000. Jamie expects a profit margin of 20 percent. This margin is 5 percent larger than that of her largest competitor, Apps, Inc. 

●  If Jamie decides to embark on her new venture, what will her accounting costs be during the first year of operation?

○   Her company’s implicit costs? 

○   Her company’s opportunity costs? 

●   Suppose that Jamie’s estimated selling price is lower than originally projected during the first year. How much revenue would she need in order to earn:

○   Positive accounting profits? 

○   Positive economic profits

The answer has to be APA format with turnitin report

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