Business Economics Coursework.
Added on - 16 Sep 2019
Business Economics CourseworkProfessor Popkiss is a retired scientist who enjoys, in his spare time, restoringold clocks and watches to their former glory. Now that he is retired fromacademic life, he is thinking about pursuing his hobby on a more commercialbasis by setting up his own shop called ‘Time to Go’ in Milsom Street, Bath.A former colleague, Dr Beaker, carries out some market research on ProfessorPopkiss’s behalf and estimates the following information:AverageRevenue (AR) £’sNumber of clocksrestored per week(q)Total Costs004003010420302048030305803040720305090030601120307013803080168030902020Part A(1). From the evidence provided in the table what type of market do you think ProfessorPopkiss would be entering? Would you enter this market? Explain your reasoning (5 marks).(2). Calculate Total Revenue (TR), Marginal Revenue (MR), Total Costs (TC), Average Fixed Costs(AC), Average Variable Costs (AVC), Average Total Costs (ATC), Marginal Costs (MC) and Profits(∏) for each level of output (q). (Write your results in tabular format) (6 marks)(3). Explain the shape of Professor Popkiss’sshort run ATC curve(4 marks).(4). How many clocks should Professor Popkiss restore in order to earn maximum profits? Andwhat price should he charge for restoring them? Explain your answer (4 marks).