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Market Analysis and Profit Maximization for 'Time to Go' Shop by Professor Popkiss

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Added on  2019-09-16

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This coursework analyzes the market for 'Time to Go' shop by Professor Popkiss who wants to pursue his hobby of restoring old clocks and watches commercially. It includes calculations of TR, MR, TC, AC, AVC, ATC, MC, and Profits for each level of output. It also explains the shape of the short run ATC curve and suggests the number of clocks to be restored and the price to be charged for maximum profits. The coursework further plots the ATC, MC, AR, and MR functions and indicates the profit-maximizing price and output. It also discusses the conditions under which Professor Popkiss can earn these profits in the long run. Additionally, the coursework assumes a new demand curve and suggests the profit-maximizing price and level of output, and advises Professor Popkiss about his options and tactics to maintain profits in the long run.
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CourseworkProfessor Popkiss is a retired scientist who enjoys, in his spare time, restoring old clocksand watches to their former glory. Now that he is retired from academic life, he isthinking about pursuing his hobby on a more commercial basis by setting up his ownshop 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 Costs00 4003010420302048030305803040720305090030601120307013803080168030902020Part A(1). From the evidence provided in the table what type of market do you thinkProfessor Popkiss would be entering? Would you enter this market? Explain yourreasoning (5 marks).(2). Calculate Total Revenue (TR), Marginal Revenue (MR), Total Costs (TC), AverageFixed Costs (AC), Average Variable Costs (AVC), Average Total Costs (ATC),Marginal Costs (MC) and Profits (∏) for each level of output (q). (Write your resultsin 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
Market Analysis and Profit Maximization for 'Time to Go' Shop by Professor Popkiss_1

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