Problem 2. A firm has following short-run production function: Q=50L+6L^2-0.5L^3 Q=quality of output per week L= number of worker a. When dose the law of diminishing returns take effect? b. Calculate the wage of the values for labor over which stage I, II, and III occurs. C. Assume each worker is paid $10 per hour a
1. Which of the following industries would you classify as an oligopoly? Which would you classify as monopolistically competitive? Explain your answer. If you are not sure, what information do you need to know to decide? a. Athletic shoes b. Restaurants c. Watches d. Aircraft e. Ice cream 1) How does a firm in an oligo
A mail-order firm processes 5,000 checks per month. Of these, 65% are for $50 and 35% are for $70. The $50 checks are delayed two days on average; the $70 checks are delayed three days on average. a. What is the average daily collection float? How do you interpret your answer? b.What is the weighted average delay? use the res
Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following: Average number of payments per day 400 Average value of payment $1,400 Variable lockbox fee (per transaction) $ .75 Daily interest rate
Cost function: 2. You hire an intern from Southern University to help you analyze your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3Q2. Using this equation, answer the following and show your logic and calculations. a. How much is your firm's profit or loss at an output of zero? Explain. b. With the above cost equation, average total costs (ATC), first decline as output increases, and then begin to rise. Assuming output occurs in whole units, i.e. 1, 2,3,... at what output does the low point of ATC occur and what is the ATC at that output? Show your calculations. c. What is the variable cost of an output of 50? d. What are Average Fixed Costs (AFC) at a production level of 10?
2. You hire an intern from Southern University to help you analyze your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3Q2. Using this equation, answer the following and show your logic and calculations. a. How much is your firm's profit or loss at
Determine the difference between Total Variable Costs (TVC), Average Variable Costs (AVC) and Marginal Costs (MC). What do we mean by these different types of costs? How are they calculated? What would be an example of each?
Please Provide an Elaborate answer as long as possible. I need to understand these concepts for future exams and i cannot answer such questions. (a) Explain what is meant in the Heckscher-Ohlin theory by (i) The relative factor intensity of a commodity, (ii) the relative factor abundance of a country. (b) How ar
See Attached File.
Explain why some firms may suffer diseconomies of scale. Do you know any examples? Could GM be an example of diseconomies of scale?
An analyst in the production department for Chevrolet Caprice stated that "The marginal cost of a Caprice, given our current volume, is $12,500. Of course, the actual marginal cost depends on the number of cars produced. The larger the number produced, the lower the unit cost because we will spread out our design and tooling cos
Assume labor costs are 17.5% of revenue per vehicle for General Motors. In union negotiations during the late 1990s, GM attempted to cut its workforce to increase productivity. Together with the job reductions they planned, GM officials hoped to make the company's North American operations fully competitive with its U.S. and Ja
A few detailed paragraphs please
1. Government intervention may be required to correct market outcomes because of: a) externalities b) market power c) public goods d) all of the above 2. The optimal mix of output may not be produced by an economy because of the existence of: a) monopolies b) externalities c) public goods d) all of the abo
An oligopoly exists with two firms, A and B. The demand function for these oligopolists is Q=1000-40P. a. If firm A's cost function is TC=3000+7Q, what quantity (Qa) will it produce and price (Pa) will it charge to maximize profits? b. If firm B's cost function is TC=3000+5Q, what is this firm's profit or loss? c. Which
A profit-maximizing firm operating in perfectly competitive output and input markets will be using the optimal amount of an input
A profit-maximizing firm operating in perfectly competitive output and input markets will be using the optimal amount of an input at the point at which the monetary value of the input's marginal product is equal to the additional cost of using that input - in other words, when MRP=MLC." Based on the theory above, please expla
(Prob. 1: Productivity) A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previou
6. Merger Gains. Acquiring Corp. is considering a takeover of Takeover Target Inc. Acquiring has 10 million shares outstanding, which sell for $40 each. Takeover Target has 5 million shares outstanding, which sell for $20 each. If the merger gains are estimated at $25 million, what is the highest price per share that Acquiring
See attached file for full problem description. You have just been hired as a managerial accountant. You are responsible for variance analysis for direct materials required in the manufacturing of polo mallets. An old college friend called and asked you to lunch. You raced out the door before finishing the cost analysis fo
See attached file for full problem description. E6-7 Shynee Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or it can be processed further and sold for a
Your manager comes in with three sets of proposals for a new production process. Each process uses three inputs: land, labor, and capital. Under proposal A, the firm would be producing an output where the MPP of land is 30, labor is 42, and capital is 36. Under proposal B, at the output produced the MPP would be 20 for land, 35
Use the following data for a pure monopoly to calculate the firm's: (a) total revenue, marginal revenue, marginal costs, and average total cost; (b) its profit-maximizing output level and produce price; (c) its profit. (d) Use the price-cost formula to determine whether or not the firm's operations are productively-efficient.
When Burton Denson graduated with honors from the American Trucking Academy, his father gave him a $350,000 tractor-trailer rig.
When Burton Denson graduated with honors from the American Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his revenues were typically $25,000 per month, while his expenses (fuel, maintenance, and depreciation) amounted to only $18,000 per month. T
Consider a monopoly firm facing market demand expressed as p = 200 - ½y , where the firm's total cost in dollars per month is
Please show all work and calculations. Consider a monopoly firm facing market demand expressed as p = 200 - ½y , where the firm's total cost in dollars per month is: TC = 2y2 + 15y + 144, where p is measured in dollars per unit and y is measured in units per month. a. Write the expressions for the firm's Total Revenue,
Describing a company that has made a strategic decision based on productivity, wages and benefits, and other fixed and variable costs.
Productivity and Cost Paper I need a subject to write this paper over. Prepare a 700-1,400-word paper describing a company that has made a strategic decision based on productivity, wages and benefits, and other fixed and variable costs. Analyze the decision and its expected outcomes. Incorporate the law of diminishing margin
As manager of the only renting construction equipment in NY, it has been observed that the demand through Thursday to Saturday in much higher that it is on Sunday through Wednesday. The demand for equipment during the weekends is: P=10-0.1 Q And the demand during the weekdays is P =25-Q What pricing strategy you suggest t
Is the following sentences true or false and why (please give mathematical or graphical explanation when needed)? 1. Empirical studies often indicate that the long- run average cost curve for PC industry is J -shaped 2. a profit- maximizing monopolist will always choose on output in the short run where the average total c
The .... is the increase in output obtained by hiring an additional worker. a. average product b. total product c. marginal product d. marginal cost my answer is D The term "diminishing returns" refers to a. falling interest rate that can be expected as one's investment in a single asset increases b. reduction in pro
Thomas Schelling, an expert on nuclear strategy and arms control, observed in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), "The power to constrain an adversary depends upon the power to bind oneself." Explain this statement using the concept of strategic commitment. In the 2000 US presid
1.The internal rate of return on a project can be found A.by discounting all cash flows at the cost of capital B.by averaging all cash inflows, and calculating the interest rate which will make them equal to the average investment C.by calculating the intersest rate whuch will equate the present value of all cash inflows to t
1. 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 costs 2. Which of the following cost relationships is not true? A. AFC = AC - MC B. TVC = TC - TFC C. the change in TVC divided by the change in Q = MC D. The change in TC d
Average total cost is a. the change in cost divided by the change in output b. total cost divided by output c. the change in output divided by the change in costs d. total cost times output my answer is A when an increase in the firm's output reduces its long run average cost, it experiences a. economic of scale b.