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Output & Costs

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

Labor Economics summary

Assume a firm is operating in a perfectly competitive product market where the price of its output can be sold at a price p=$10. The firm can hire any number of workers at a wage of W=$50. The total product (or short-run production function) is given by Q=100*L-2.5*Lsquared, and the marginal product of labor curve is MPL=100-5*L

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

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