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Output & Costs

Best Way to Enter the International Market

1. If you were to run a company that made a realy cool gadget (e.g. MP3 player, all-in-one phone, pen-sized camera, etc.) and you decided it was time to enter the international market, which strategy would you utilize? (Export/import, Management Contracts, Licensing, Franchising, Joint Venture/Strategi Alliance, Wholly Owned S

2 macro problems

One question involves Y=C+G+I+NX. GDP, GNP another one involves: savings and investments (See attached file for full problem description)


Jockey Co. has a cost of equity capital estimated to be 15%. They have a current dividend of $3 per share and analysts expect the dividend to grow at a rate of 25% a year for the next 3 years, and then it will grow at a constant rate of 10% per year. What is the current stock price of Jockey Co.?

Price Discrimination

There is a firm that has pricing control of its output and is able to identify its consumers into two groups. The total quantity demanded for its output is the summation of the quantity demanded by the two groups, therefore Qtotal = Q1 + Q2 where Qtotal is the total quantity demanded, Q1 is the quantity demanded by group 1, and

Mud Construction Co

I cannot find any help in the textbook for this problem. As I'm taking an online course, finding alternative forms of help proves difficult. Here's the problem: Mud Construction Co. is considering buying new equipment with a cost of $625,000 and a salvage value of $50,000 at the end of its useful life of ten years. The equi

Production function, FC, VC, AC, AVC, MC

Suppose a firm faces a cost function of the form : C (y) = 8 + 4y + y ^ 2 a) What is the firm's fixed cost, FC? b) What is the firm's variable cost, VC? c) What is the formula for the average cost, AC? d) What is the formula for the average variable cost, AVC? e) What is the formula for the marginal cost, MC? f) On a

Economics and management

19. The net present value of a project is calculated as follows: A. the future value of all cash inflows minus the present value of all outflows B. the sum of all cash inflows minus the sum of all cash outflows C. the present value of all cash inflows minus the present value of all cash outflows

Microeconomics: Maximizing Profits

Profit Maximization -------------------------------------------------------------------------------- A monopolistic firm operates in two seperate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows: Market A p = 15 -Q Market B p = 11 -Q

Average cost of capital

The current interest rate on new debt is9%. The firm's marginal tax rate is 40%. It's capital structure, considered to be optimal, is as follows: Debt $104,000,000 Common equity $156,000,000 Total liabilities and equity $260,000,000 A.

Does More GDP make more people happier?

1. How can real GDP per person be higher in one country than in another even if the first country has lower aggregate reeal GDP than the second? 2. Under what circumstances might a significant rise in nominal GDP per person lead to a widespread of reduction in overall life satisfaction, after taking into account marital hap

Making a Business Decision: Expand, Leave or Shut Down

Question: You have opened your own word-processing service. You bought a personal computer, and paid $5, 000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500. You could sell any used machine for $1,000. If you were not word processing, you could earn $20,00

What is market efficiency?

1. When the CR = 80%, is the market efficient when the market behavior follows the price leadership model? 2. When the CR=80%, is the market efficient when the market behavior follows the contestable markets model? Price leadership -setting a price w/the expectation that the other firms match the leader's price cont

3 part problem involving Externalities

Wilbur and Orville are in a dispute. Orville would like to fly his planes while Wilbur does not want to have the value of his house decreased due to the noise. Use the information in the table to help them solve the problem. # of Flights Total Profits Marginal Profits Value of Wilbur's House 1 $1000

Cost-output relationships

For each of the following cost-output relationships, describe the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions (C = total cost, Q = output): (1) C = 42,500,000 + 2550Q (2) C = 8.48 + 0.65Q + .00220Q2


What are some facors that give rise to economies of scale? and Diseconomies?

The Zinger Company: Total Cost, Marginal Revenue and Price

Zinger Company makes and sells a sewing machine line. manufactures and sells a line of sewing machines. Demand (Q) is represented by the equation below: Q = 400 - .5P P = price. The total cost of making Q units/period are represented by: TC = 20,000 + 50Q + 3Q2. What is the expression for total profits in term

I need help in calcuating for Weighted average cost of capital.

I need help in calcuating for Weighted average cost of capital. The question go Suppose that George Industries has a cost of equity of 14%, no preferred stock and a cost of debt of 9%. If the target debt/equity ratio is 75% and the tax rate is 34%, what is Dugan 's weighted average cost of capital(WAAC)?

Managerial Economics

Given the following production function ,where x is an input and Q is output.Output sells for $10.00 per unit and inputs (X) are $20.00 per unit.Dtermine the optimal amount of input (X) to use in order to maximize profit.Q=10-.25X^2


1. When SRAC is declining, the firm experiences economies of scale. True False 2. A monopoly firm is a price taker. True False 3. Which of the following statements is NOT true? MC is a change of TC MC of labor is wage rate. A MC curve cuts through the minim

Price discrimination question

M is a monopolist selling goods G. M's cost function is c(y)=4y where y is the total production of G. Some of M's potential customers are members and get a member magazine with coupons. Member demand curve: X1(p, C)=42-(p-C) where X1(p, C) is member demand, p-C is the price they actually pay, p the official price, and C is price

Page 789.4

How can you justify the existence of government-granted monopolies for such public utilities as local telephone service, natural gas distribution, and electricity in the light of the traditional economic argument that the more competition there is, the more likely it is that an efficient allocation of resources will occur?

Please include graphs

In problem 4, Sue's surfboard buys a second plant and the total quantity of each quantity of labor increases by 50%. The total fixed cost of operating each plant is $200.00 a week. The wage rate is $100.00 a week. a. Set out the average total cost curve when Sue's surfboards operates two plants. b. Draw the long-run average

Case Study/Monopolistic market

Just prior to the last round of negotiations with the Major League Player's Association, baseball commissioner Bud Selig broke open the books to show that major league baseball (MLB) had lost $1.4 billion during the previous 5 years. Worse yet, operating losses of more than $500 million per year on stagnant revenues of $3.

Profit Maximization

1)a. Based on the following table, what is the profit maximizing output? Output Price Total Costs 0 $ 10 $ 31 1 10 40 2 10 45 3 10 48 4 10 55 5 10 65 6 10 80 7 10 100 8 10 140 9 10 220 10 10 340 b). How would your answer change if, in response to an increase in demand, the price of the good increased to


Four people: Person A whose profit is 84X-6X^2 Person B whose profit is $30-6X Person C whose profit is $75-10X Person D whose profit is $100-8X Person A has property rights, meaning they can set the value of X from 0 to 8. Each person must have the same cost of negotiation with each other. What is the minimum per perso