When one automaker begins offering low cost financing or rebates, others tend to do the same. What two oligopoly models might offer an explanation of this behavior? my answer: I think the two types of oligopoly models are the Game theory model and Kinked Demand Curve. Because we know their will always be a demand for cars, b
ABC, Inc. produces an output that corresponds to minimum average cost which is $50.00. The firm wishes to adopt a 50% mark-up on unit cost. A recent study indicates that the price elasticity of demand is about -2.5 for ABC, Inc's producut. Will this pricing decision maximize the firm's profits? (Show your work).
The Staples Company is composed of a marketing division and a production division. The marketing division packages and distributes a plastic item made by the production division. The demand cureve for the finished product sold by the marketing division is Po=200-3Qo where Po is the price (in dollars per pound) of the finished
1) The following matrix shows the payoffs for an advertising game between Combra and Paka. The firms can choose to advertise or to not advertise. Numbers in the matrix represent profits; the first number in each cell is the payoff to Combra. (Numbers in millions.) Combra (rows)/Paka (columns) Advertise Donâ??t Advertise Adv
2. Advertising can enhance economics efficiency when it: A) increases brand loyalty B) expands sales such that firms achieve substantial economies of scale c) keeps new firm from entering profitable industries d) is undertaken by pure competitors 3. We would expect a cartel to achieve a) both allocative efficiency and pr
1. What does it mean to say that the demand for resources is a derived demand? Is the demand for all goods and services a derived demand? 2. Using the information in the following table, calculate the marginal revenue product (MRP = MPP X MR). Units of Resource Resources Total Output Price Price 1
Which of the following is a characteristic of both monopolistic competition and perfect competition? 1. Firms face singificant barriers to entry 2. A firm's marginal revenue curve is below its demand curve. 3. In the long run, a firm will earn zero economic profit. 4. In the long run, a firm will produce a level of output
I'm requesting assistance with the below questions in order to prepare for an exam. The course is "Macroeconomics" author: Robert J. Gordon 11th edition text. I'd appreciate any assistance with these questions? 32) According to the Monetarists, â??Policy activismâ? is difficult if not impossible to perform successfully
The Haverford Company is considering three types of plants to make a particular electronic device. Plant A is much more highly automated than plant B, which in turn is more highly automated than plant C. For each type of plant, average variable cost is constant so long as output is less than capacity, which is the maximum outp
The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm's output is $25. The cost of other variable inputs is $400,000 per day. Although you do not know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed
Need help problem must on excel file
Please help me solve this problem...long-run effects. Your firm sells a very popular children's game. As the manager, you have received information that another firm is thinking about introducing a similar game. You have the following facts: Your average cost of production is constant at $20. At the current monopoly pr
Based on the below information, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire? Number of workers Output 0 0 1 50 2 110 3 300 4
Byron Corporation's present capital structure, which is also its target capital structure, is 40% debt ad 60% common equity. Next year's net income is projected to be $21,000 and Bryan's payout ratio is 30%. The company's earnings and dividends are growing at a constant rate of 5%; the last dividend (D0) was $2.00; and the curre
"Poor people are poor because they do not have very much money. Yet, central bankers keep money scarce. If poor people had more money, poverty could be eliminated." Evaluate the statement. Be sure to indicate whether or not you believe the statement is true, false, or uncertain. Just one or two paragraphs should be enough. Pl
Production and Cost Problems
You are the manager of a firm that sells a commodity in a market that resembles perfect competition, and your cost function is C(Q)=Q +2Q2. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 60 percent cha
An accountant for a car rental company was recently asked to report the firm's costs of producing various levels of output. The accountant knows that the most recent estimate available of the firm's cost function is C(Q)=100+10Q+Q2 , where costs are measured in thousands of dollars and output is measured in thousands of hours re
One of the lessons of economics is that "there is no such thing as a free lunch." That means that businesses, consumers and whole societies face tradeoffs whenever they make a decision. * Explain a decision that you have made at work or concerning your career. * Identify and explain the tradeoffs you faced.
52. The Jones Company has the following cost schedule: Output Total Cost (Units) ($) 0 3000 50 3750 100 4275 150 4675 200 5000 250 5300 300 5700 350 6250 400 7050 450 8225 Prepare (a) average total cost and (b) marginal cost schedules for the firm.
I need help with the steps to figure out the answer to this problem. PRODUCTION ANALYSIS AND COMPENSATION POLICY / COST ANALYSIS AND ESTIMATION Marginal Rate of Technical Substitution. The following production table provides estimates of the maximum amounts of output possible with different combinations of two input fact
Byron Corporation's present capital structure, which is also its target capital structure, is 40% debt ad 60% common equity. Next year's net income is projected to be $21,000 and Bryan's payout ratio is 30%. The company's earnings and dividends are growing at a constant rate of 5%; the last dividend (D0) was $2.00; and the curre
Complete the following table (round each answer to the nearest whole number): Total Variable Fixed Marginal Average Avg. Avg. Fixed Var. Output Cost Cost Cost Cost Cost Cost Cost 0 1
Please assist with parts a and b. Please show all your work so i can understand Thank you! The following is a demand function that has been estimated for a monopolistically competitive firm. Q = 320 - 2P If the firm's TVC function is TVC = 40Q - 1.5Q2 +1/3 Q3 Total fixed cost = $500 a. How much shou
Suppose a monopolistically competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC=$24. Also the firm has a constant marginal cost, MC=$3. Demand for the product that the firm produces is given by P=27-3Q. The chart labels the quantity of output 1-9. I need to find t
Use the information about marginal cost and marginal revenue in the table below to determine the profit maximizing level of output Output 1 2 3 4 5 6 7 8 9 MC 10 11 13 16 20 25 31 38 48 MR 50 45 40 35 30 25 20 15 10
A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?
Use the information in the table below to determine the average variable cost of producing 5 units of output (The total fixed cost is 10) Output 0 1 2 3 4 5 6 Cost 10 11 13 16 20 25 31
Suppose a firm in monopolistic competition has the following demand schedule. Suppose the marginal cost is a constant $70. How much will the firm produce? Is this a long- or short-run situation? If the firm is earning above-normal profit, what will happen to this demand schedule? Price Quantity Price Quantity --------------
You were recently hired to replace the manager of the Roller Division at a major conveyor manufacturing firm, despite the manager's strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and crimps rollers. As you begin reviewing the company's production information,