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Output & Costs

Microeconomics problem

Need help in determining the following microeconomics problem. (See attached file for full problem description) --- Profit-Maximizing Output Level Consider a firm under Perfect Competition. The market price P = $25. a. Fill in the table below. b. State the profit-maximizing output rule. According to the table, at

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

Microecon problem

Relationship between the costs 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 fin

Microecon problem

Costs and Output Susan owns a small shop and produces dining room sets. Table 1 presents data on her costs and various levels of output. a. Fill in the table. b. At what output level is Susan's Average Total Cost at a minimum? c. At what output level do diminishing returns begin? (see chart in attached file)

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-



Output & profit

Please provide your answers to the study questions. If you are unsure, if you could provide a website or book for the information, this would be helpful. The next 3 questions refer to the following: Total cost schedule for a perfectly competitive firm: Output Total Cost 0 $ 10 1

Monopolistic questions

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

Competitive markets

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

Net Present Value

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

Verifty Answers

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

A Discussion of the Principles of Microeconomics

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

Point price elasticity of demand/optimal markup

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

8906-Interger Linear Programming Spreadsheet Modeling & Decision Analysis 4ed

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

Monopoly and Competition Problem

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?

Corporate Finance: Payback Period (Discounted, Required); NPV

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 need the answer illustrated with graphs.

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

Basic MicroEconomics Help

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

Profit/Price trade-off curve

What is a profit/price trade-off curve and how does it relate to moving from a competitive industry to a monopoly industry?

Calculate the Expected Cost of Defects if Not Inspected

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

4 Economics Questions...

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

Specialized task assingnment vs. broad task assingment

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?

Lon Run Average cost curve

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?

Marginal return

(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