Can you answer these study questions as best as you can? If you are not sure, would you give a web site that I can go to for answers? 1-3. Monopolistic competition is similar to perfect competition in that: a. there are a large number of firms. b. firms earn economic profits in the long run. c. firm
Can you help me with this problem? Grocery stores & gasoline stations in a large city would appear to be examples of competitive markets: There are many relatively small sellers, each seller is a price-taker & the products are similar. 1.How could you argue that these markets are not competitive & why? 2.Could each compan
I need some help in solving this net problem question. I Any assistance will be appreciated. Prices for new components cost $50. Thus, P=MR=$50. Marginal costs MC=10+0.003Q and Total Costs TC=78,000+18Q+.002Q^2(this means the Q is squared). A new building will cost $100,000. A company is trying to determine if the build
Points inside (or below) the PPF are____________. a. unattainable b. attainable and efficient c. attainable but inefficient d. attainable and neither efficient nor inefficient I say it is c, am I correct? An increase in resources_____________. a. shifts the PPF inward b. shifts the PPF outward c. moves the
You have been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation.The firm currently uses 70 workers to produce 300 units of output per day.The daily wage(per worker) is $100 and the price of the firm's output is $30.The cost of other variable input is $500 per day. Although you
What would each of the following events do to the terms of trade of the importing country and the exporting country, other things being equal ? a- A blight destroys a large part of the coffe beans produced in the world. b-The koreans cut the price of the steel they sell to Canada. c-General inflation of 10 percent occur
Here is the problem: Last week, Archie Bunker's offered a 25 cent coupon on 12-packs of Diet Cola, regularly priced at $4. Coupons were used on 40% of all purchases, and resulted in an increase from 400 to 490 cases sold per week. I know that to find Ep = % change in qty / % change in price, and the equation for optimal ma
Question 1 Bill is evaluating 2 mutually exclusive pollution devices. The real discount rate is 5%. The cash flows for each device are as follows Time Device A Device B 0 (100,000) (200,000) 1 (5,000) (3,500) 2 (5,000) (3,500) 3 (5,000) (3,500) 4 (3,500) 5 (3,500) 6 (3,500) a) Compute the cost of each machine
company maufactures three products: A, B and C. The company currently has an order for three units of product A, 7 units of product B, and 4 units of product C. There is no inventory for any of these products. All three products require special processing that can be done on one of two machines. The cost of producing each produ
The optimum market quantitiy in a competitive market if: P=100-.5q MR = 100-q Ac= 10$ per unit Is this the way you calculate it? If not, how do you do it? Profit =MC=MR 10 = 100-q 90 = q How do you then calculate the quantity brought to market by a monopolist?
Question 1 You are considering an investment in a project with a life of eight years, an initial outlay of $120,000 and annual after-tax cash flows of $52,000. The project also requires an increase in inventories of $22,000. This $22,000 investment in inventories is required at the outset of the project and will be released wh
I would really apriciate it if you could explain the answer in a detailed way with graphs.Thank you. Firms in pure competition take the market price as given and produce the level of output which will maximize their profits.This quantity can be determined graphically by using either the total revenue, total cost approach or
1) Suppose you know the average total cost and the average variable cost for a given level of output, Q. Which of the following costs can you NOT determine given this information? a) Total cost b) Average fixed cost c) Fixed cost d) Variable cost e) You can determine all of the above costs given the information provided
What is a profit/price trade-off curve and how does it relate to moving from a competitive industry to a monopoly industry?
Your company currently using an inspection process in its materials receiving department is trying to initiate an overall cost reduction program. One possible reduction is the elimination of one of the inspection positions. This position tests materials that have a defective content on the average of 0.04. By inspecting all item
From Figure 1, a monopsonist's supply curve is the same as the market supply curve, and the marginal revenue product curve of team owners, the extra revenue generated by an additional worker, is represented by MRP. The marginal cost curve facing the team owners, is MC. The marginal cost curve is greater than the cost of additi
Just answers the 4 questions below using some economic concepts. 1.) give an example that depicts the law of diminishing marginal returns. Please do not use the example for the questions below, use something else. 2.)Please give comment and what you think??? I am going to use labor examples from my old profession. I owne
Discuss the costs and benefits of specialized task assignment relative to broad task assignment. What variables are likely to be particularly important in determining the optimal choice between these two alternatives?
I. What assumption gives rise to a U-shaped long run average cost curve for the firm? (Describe shortly) II.What ways firms in on oligopoly try to elminate or control the consequences of this charcteristic?
(i) Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input? (ii) Comment on the following statement: "Average cost includes both fixed and variable costs, whereas marginal cost only includes variable costs. Therefore, marginal cost is never greater than ave
Output= 2000 unit Total Fixed Cost= $4000 Price of Labor= $80 price of Capital= $320 Marginal Product of Labor= 20 Marginal Product of Capital= 80 Price of output= $8 Long Run Marginal Cost= $8 Average Product of labor= 40 What Advice should be given for Short run and Long run and why? If output rises $10 do
Bonco, Incorporated: A Firm in Transition Bonco, Incorporated, produces a patented surgical device known as the incis-a-matic. The device has been sold successfully in the U.S. market, but it has been produced in two of the company's outdated plants, in Columbus, Ohio, and in Cincinnati, Ohio. Barry Cosgrove, a young econ
The MRP of an input is... a) the selling price of the last unit of OUTPUT b) the increment of total revenue resulting from the use of an additional unit of input. c) used in determining marginal product d) harder to determine in pure competition than in monopoly e) harder to determine in pure competition than in o
If a viable monopolist must pay a new franchise tax ( a flat sum to operate), he will unless profits fall below zero: a) increase output. b) decrease output. c) lower price. d) make no change in price or quantity, but earn less profits e) raise price to keep profits at the same level.
See attached file: If the market price increases to $15, the firm (described in the attached chart) will: a) shutdown b) earn economic profits c) produce more than 10 units of output d) produce less than 10 units of output e) both b and c are correct
Suppose that a firm has the opportunity to employ a new machine that will increase production by five units and will cost $10 to purchase. If each unit of output can be sold for $5, then the: a) marginal revenue product of the machine is less than its cost, and the firm should not take advantage of the opportunity. b) mar
Suppose an imperfect competitor faces the demand schedule attached and its marginal cost is constant at $2. If the firm is able to produce any output level, then it maximizes profits at (see attachment)
88. If it is true that handling the mail does not get cheaper as the volume of mail increases, which of the following best explains this fact? A) The Post Office is run by the government and therefore is inefficient. B) The rule "the bigger the volume, the lower the cost" is true only if other things remain the same; since
A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is: A) -$2.00. B) $0.00. C) $1.00. D) $2.00. E) none of the above.