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Output & Costs


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

government-granted monopolies

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

minimum per person transaction cost

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

Monopolies & oligopolies

1. Provide an example of a monopoly, an oligopoly, and a cartel. 2. Discuss the welfare effects of monopolies and oligopolies. 3. Which actions you think OPEC will take over the next year?


Calculate the total change in a year's GDP: Tone Artists, Inc. produces 100,000 new White Snake CD's that it prices at $15 a piece. Ten thousand CDs are sold abroad, but alas, the rest remain unsold on warehouse shelves.

Possibilities curve problem

Not sure how to apply the following proposed society's possibility curve to study questions. Output (per year) Possibility Food(millions of tons) Tractors(millions) A 0 30

5 Problems

1. (a) Using calculus, derive the relationship between a monopolist's marginal revenue, the monopolists' price, and the price elasticity of demand. (b) Consider a monopolist who produces output at a constant marginal and average cost of $12. The price elasticity for the monopolist's product is 3. Use your answer to (a) to find

Fixed Cost Problem

A firm fixed cost are 0 outputs and its aveage total cost producing different output levels are summarized in the table below..... Complete the table to find the fixed cost, variable cost, total cost, average fixed cost and average variable cost and marginal cost. Q FC VC TC AFC AVC

Cost Economic Problem

Still dont know how to do this type of problem...... An industry consists of three firms with sales of $200,000, $500,000, $400,000. a. Calculate the Herfindal-Hirschmann index (HHI) b. Calculate the four-firm ratio. (C^4) c. Based on the US Dept. of Justic Mergers Guidelines do you think the dept would block the merger

Economic Problem with A Car Company

A major car company (from Japan), announced a major restructuring plan. to attempt to reverse its 6 percent decline in sales. the company's North American sales were hard hit, where a 29 percent drop in sales. This because of bad loans and financing with banks. In Japan, sales dropped a 56 percent, due to recalls and attempts

Lerner Index

A firm has $1 Million in Sales, a Lerner Index of 0.65 and a marginal cost of $35 and competes against 1,000 other firms in its relevant market. a. What price does the firm charge it customers? Show formula to explain how do this. b. By what factor does this firm mark up its price over marginal cost? c. Do you thinkthis fir

Price, output, total profit

1. Consider the attached graph. Suppose that Sony Company and American Company jointly form a new firm, Venture Company, whose ball bearings replace the output sold by the parents in the domestic market. Assuming that Venture Company operates as a monopoly and that its costs equal MC0=AC0, what would be the firm's price, output,

Shut Down decision in the SR and in the LR.

(See attached file for full problem description with diagram) --- Exhibit 1 shows a firm in a price-taker market. Use the diagram to answer the following questions. a. Market Price = $20. If this firm wants to maximize its profits, how many units, Q, should it produce? Be careful, there is a trick in the graph! b. What w

Profit maximizing decision

Please help explain profit maximizing decision of a pure monopolist firm and compare it to the profit maximizing decision of a firm within a purely competitive market and a monopolist firm in a competitive market.

cost & oligopolies

--- The above graph depicts a firm that tries to maximize profits or minimize losses. This firm has a Total Cost Equation of 15 + 20Q + .5Q2. Some texts describe the above situation as an oligopoly engaged in cutthroat competition, while others uses the term Sweezy oligopoly to describe this market situation. Please step me

Relationship Between the Costs

See the attached file. Exhibit 2 shows a firm's costs of production in the short run. First, complete Table 2 below. Based on the Table, answer the following: a. Find TC, TFC and TVF for an output level of 3 units and 6 units. b. You know the TC of producing 6 units and the MC producing the 6th unit. Can you find the TC of

Short run costs/variable and total revenue

7) Each of the following situations could exist for a firm in the short run. In each case, indicate whether the firm should produce in the short run or shut down in the short run, or whether additional information is needed to determine what it should do in the short run. a) a. Total cost exceeds total revenue at a

Break-Even & Operation Leverage

Can you please assist me with the following three questions - 1- Describe how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs. 2- Describe how expanding a company's division with the highest operating leverage would affect the company's risk position. 3-