I. A company has fixed cost of $200,000. The sales price of its output is $56 per unit. It has variable costs of $31 per unit. The company is going to install new equipment which will cut the fixed costs to $150,000 but which will increase variable costs to $34 per unit. The sales price will remain at $56. 1)Find the break e
You're the CFO of Widgets Inc. The CEO comes to you concerned, because while sales seem to be very strong, there does not seem to be profits to pay dividends demanded by the shareholders. He wants to know if you could let him know how well the company is using its assets, and how the net profit compares to net sales. You reme
Question 1 Consider the following short-run production function (where L = variable input, Q = output): Q = 10L – 0.5L2 Suppose that output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input (L) as it needs at $20 per unit. a. Determine the marginal revenue product fun
A- A firm with market power produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces a demand function given by P = 50 - Q. What is the marginal revenue for the firm? b- A firm with market power produces a chip at a marginal cost of $10 per unit and zero fixed costs. It faces a demand function given
The Goldberg-Scheinman Publishing Company is publishing a new managerial economics text for which it has estimated the following total fixed and average variable costs. Total Fixed Costs: Copy Editing 10,000 Typesetting 70,000 Selling and Promotion 20,000 Total fixed costs: 100.000 Average Variable Costs
Tinley Paper, Inc. produces uncoated paper used in a wide variety of industrial applications. Newsprint, a major product, is sold in a perfectly competitive market. The following relation exists between the firm's newsprint output and total production costs: Total Output (tons) Total Cost ($) 0
Total Hours Hours Studying GPA Hours Working Income 60 60 4.0 0 $0.00 60 40 3.0 20 $100.00 60 30 2.0 30 $150.00 60 10 1.0 50 $250.00 60
For each of the following events, indicate whether the AD or the AS curve shifts. Briefly explain the reasoning behind your choice. a. The government increases defense spending. b. Oil prices rise dramatically. c. Stock prices and housing values fall. (Hint - this would decrease household wealth.) d. Our largest
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
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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
Can anyone help? I was trying to figure this one out but I can't figure out how you can determine the amount of employees needed without knowing how much the employer is willing to pay a single employee. I don't know, it is just confusing to me. Does anyone out there have a clue, because I don't. Common sense would tell you t
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?
If the market price for the product is $150 what is the optimal quantity for your company to produce?
3. In a perfectly competitive market your firms cost curve is: TC = 200 + 50Q + 2Q2 If the market price for the product is $150 what is the optimal quantity for your company to produce?
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
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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