This coursework is about Professor Popkiss's business 'Time to Go' in Milsom Street, Bath. It includes market research, revenue, costs, profits, and elasticity of demand.
Business Economics CourseworkProfessor Popkiss is a retired scientist who enjoys, in his spare time, restoring old clocks and watches to their former glory. Now that he is retired from academic life, he is thinking about pursuing his hobby on a more commercial basis 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 Professor Popkiss’s behalf and estimates the following information:AverageRevenue (AR) £’sNumber of clocksrestored per week(q)Total Costs00 4003010420302048030305803040720305090030601120307013803080168030902020Part A(1). From the evidence provided in the table what type of market do you think Professor Popkiss 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’s short run ATC curve (4 marks).(4). How many clocks should Professor Popkiss restore in order to earn maximum profits? And what price should he charge for restoring them? Explain your answer (4 marks).
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