Question 1: Name and describe the new product that you are interested to launch.
Question 2: Assume that you plan to sell 10 units of the product. What would be your implicit and explicit costs of production for the product that you propose to launch? What would be the total cost?
Question 3: Assume that you plan to sell 10 units of the product. What would be your fixed and variable costs of production for the product that you propose to launch? Please make an itemized list and assign approximate costs (in dollars) to each item listed. For each item, indicate whether the cost is fixed costs or variable costs. What would be the total cost?
Question 4: Compare the total costs in parts (2) and (3). Are they equal or different? Justify your answer.
Question 5: Assume that you plan to sell 10 units of the product. What would the marginal cost of production for each unit? (You may either specify numbers or present the marginal cost as a function of Q.)
Question 6: Assume that you plan to sell 10 units of the product. What would the average total cost, average fixed cost and average variable cost of production for each unit? (You may either specify numbers or present the average total cost, average fixed cost and average variable cost as a function of Q.)
