1. Average fixed cost is: a.AC minus AVC b.TC divided by Q c.AVC minus MC d.TC minus TVC 2. Economists consider which of the following costs to be irrelevant to a short-run business decision? a.Opportunity cost b.Out of pocket cost c.Historical Cost d.Replacement Cost 3. When MR=MC a.Marginal profit is maximized
Which of the following is a relevant cost? a. replacement cost b. sunk cost c. historical cost d. fixed cost e. all of the above are relevant.
Which of the following cost relationships is not true? a. AFC = AC - MC b. TVC = TC - TFC c. the change in TVC/the change in Q = MC d. the change in TC/ the change in Q = MC
When total revenue increases from $18,000 to $26,000 when quantity increases from eight to ten, marginal revenue is equal to
When total revenue increases from $18,000 to $26,000 when quantity increases from eight to ten, marginal revenue is equal to $3,000 $4,000 $8,000 $2,600
3. SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy. Besides the Hong Kong market, SAR Publisher also sells this textbook in the US. Suppose SAR Publisher can produce this textbook at a constant marginal cost of $20 per copy and the demand curves for the two markets are given by: QUS = 48, 000 - 600PU
1. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. What is marginal propensity to save of this economy? *It looks as though enough information has not been provided.* 2. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a margina
MPC and MPS describe consumer's tendencies to fully utilize their income. MPC relates to consumption tendency while MPS to saving tendency.
Give an personal example of a reverse logistics system you've experienced as a consumer. Were you satisfied with the cycle time of the process and what steps did the company take to guarantee your satisfaction. Finally, answer the question as to whether you are more likely to quit patronizing a company because of their reverse o
The year is 2007, and the price elasticity of driving on the Dulles Toll Road is 1.6. The owners of the Dulles Toll Road raise the cost of a one way trip to $8.50. The revenue from the toll increase is not as large as the owners forecasted. Should they have set a lower or higher toll? Higher, because demand is elastic
I need help with this question. I think the customer will carry the burden but not sure. I believe the answer has something to do with elasticity as well. Not sure how to tie it all together. Question: Who would bear the brunt of a national sales tax on tobacco products? Why?
Gurgling Springs, Inc., is a bottler of natural spring, Inc. is a bottler of natural springs water distributed throughout the New England states. Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains. Operating experience during the past year suggests the following demand fun
I know of some different dangers, but I would like to find which danger out weighs the rest.
I can not find the meaning of indigenization or how to use it. I know it is derived from the word indigenous.
New source bias can exist for stationary sources. Discuss why this bias leads to a solution that is not cost effective. What policies might eliminate this bias?
The New York Times, a profit maximizing newspaper, faces a downward-sloping demand schedule for advertisements. When advertising for itself in its own pages, (for example, an ad saying "READ MAUREEN DOWD IN THE SUNDAY TIMES"), is the opportunity cost of a given-size ad simply the price it charges its outside advertisers?
1. Resources are A. scarce for households but plentiful for economies. B. plentiful for households but scarce for economies. C. scarce for households and scarce for economies. D. plentiful for households and plentiful for economies. 25. Ben bakes bread and Shawna knits sweaters. Ben likes to eat bread and wear swea
Graphically solve the following problems Maximize Profit Z= $4X1+$6X2 Subject to 1X1+2X2 ≤ 8 6X1+4X2 ≤ 24 a). What is the optimal solution? b) If the first constraint is altered to 1X1+3X2 ≤ 8, does the feasible region or the optimal solution change? See attached file for full problem descri
Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)? a. oil and natural gas b. sugar and high fructose corn syrup c. computers and clerks d. keyboards and computers Which of the following is the best example of two inputs that would
3. The demand equation for a product is given by P =30 - 0.1Q² a. Write an equation for the point elasticity as a function of quantity. b. At what price is demand unitary elastic?
Retirement of the baby boomers threatens the Social Security system because the number of retirees will be relatively large compared to the number of workers remaining by 2020. What possible actions could offset this effect? Please list sources.
It is well documented that the carbon monoxide (CO) emissions from combustible engines increase in colder climates. This implies that the associated damages are expected to be less severe in summer months than in winter. Nonetheless, air quality control authorities use a standard for CO that is uniform throughout the year with
Suppose that there is a general increase in incomes. Compare the effect of this increase on the demand faced by the following two chains: a. Marriott, a four star hotel chain with properties throughout the world. b. Motel 6, a chain of low priced hotels.
See attached file for full problem description.
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8, while that of B is 1.5. The T-bill rate is currently 6%, whereas the expected rate of return of the S&P 500 index is 12%. The standard deviation of portfolio A is 10
The cash flow data of Palomba Pizza Stores for the year ended December 31, 2001, are as follows: Cash payment of dividends $ 35,000 Purchase of land 14,000 Cash payments for interest 10,000 Cash payments for salaries 45,000 Sale of equipment 38,000 Retirement of common stock 25,000 Purchase of equipment 30,000 C
You want to calculate the cluster coefficient for your own email contact list. That is, the set of names in your email address book is the relevant social network for your calculation Compose an email that you could send to each of these individuals asking for the data you would need to complete the calculation of the cluster c
You are the most despised of characters - a spammer. SPAM Levels for Profitability. See attached file for full problem description.
Company A is selling bonds paying $105 annually that will mature 10 years from today. The bond is currently selling for $970, the face value of the bond is $1000. Calculate: -coupon rate -current yield -yield to maturity
Sales ( 30,000 caps @ $50)- 1,500,000 Less vairable expenses- 900000 contribution margin- 600000 less fixed expenses- 280000 net income- 320000 Find the contribution margin and the break even point in both units and dollars.
Define opportunity costs, accounting costs and economics costs. Solve this problem: You must choose between sports training or working full time. If you choose sports training, you will have less of a social life. You will also pay $20,000 per year for training, but you will get a $15,00 grant. Food and rent is $10,000 a yea