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    Output & Costs

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    Maximizing Profits

    A monopolist faces a marginal revenue function of MR = 20 - Q. The marginal cost is $15 at all levels of output. How many units should be produced to maximize profits?

    Pricing

    The fully allocated cost of a product is $45. If the firm uses a markup of .30 what should it charge for the unit price?

    Monopolist demand function - One and Only Inc.

    One and only Inc is a monopolist. The demand function for its product is estimated to be Q=60-0.4P +6Y+2A Y=3,000 P=Price per Unit Y=Per capita disposable personal income (thousands of dollars) A=hundreds of dollars of advertising expenses The Firms average variable cost function is AVC=Q²-10Q+60 Y is equal to 3(th

    Discussing Allocative Efficiency

    Task: Use the following data for a pure monopoly to calculate the firm's: (a) Total revenue, marginal revenue, marginal costs, and average total cost (b) Its profit-maximizing output level and produce price (c) Its profit (d) Use the price-cost formula to determine whether or not the firm's operations are productively-effic

    Current Market Conditions

    Prepare a 400-500-word paper analyzing the current market conditions for Shell Oil Company and address the following topics in your analysis: ---> Impact of new companies entering the market ---> Impact of government regulations

    Lerner Index: Finding Monopolist's Profit Maximizing Output

    Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500- 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit-maximizing out-put and price. b. Calculate the monopolist's profit. c. What is the Lerner Index for

    Production costs

    Please refer attached file for better clarity of tables and graphs. Choose the one alternative that best completes the statement or answers the question. Table 8.1 Mr. B's Taxi Service Annual Income Statement Revenue $100,000 Labor Expense $50,000 Maintenance Expense $5,000 Net Income

    Marginal Product of Labor

    See attached file for complete details. Problem 1 Number Of Workers Output 0 0 1 50 2 110 3 300 4 450 5 590 6 665 7

    Extent - (How much) Decisions

    A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages per day. One months ago, they added five workers, and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers.

    Economic Costs.

    I need help in this problem: (See attached for the table) The total costs for Morris Industries are summarized in the following table. Based on this information, fill in the missing entries in the table for fixed cost, variable cost, average fixed cost, average variable cost, average total cost, and marginal cost. (1) (2)

    Profit maximization and deregulation

    1. Bob Edwards owns a bagel shop. Bob hires an economist who assesses the shape of the bagel shop's average total cost (ATC) curve as a function of the number of bagels produced. The results indicate a U-shaped average total cost curve. Bob's economist explains that ATC is U-shaped for two reasons. The first is the existence of

    Economics Production Cost

    1. Distinguish between explicit and implicit costs, giving examples of each. Differentiate between accounting profit, normal profit and economic profit. 2. Define Short Run Production Costs (TC, FC, VC, ATC, AVC and MC). Why ATC, AVC, and MC are U-shaped?

    Price of Products in the Marketplace.

    Dear OTA, Please help with the following questions below: (1) Suppose that the price of product A falls from $20 to $15. In response, the quantity demanded of A increases from 100 to 120 units. The quantity demanded for product B increases from 200 to 300. Calculate the arc cross elasticity between Product B and Product A.

    Price & output decision - demand fuction

    This question is about chapter 11 , " price & output decision" in economics for managers by Harris Motors co., believes it faces the following segmented demand function: P = 150 - 0.5Q when 0 ≤ Q ≤ 50 P = 200 - 1.5Q for Q > 50 a) Indicate both verbally and graphically why such a segmented d

    Microeconomics

    Question The following payoff matrix shows the various profit outcomes for 3 projects, A, B, and C, under 2 possible states of nature: the product price is $10 or the product price is $20. Profit Project P = $10 P = $20 A 20 80 B 40 60 C

    The value of real GDP in the current year equals

    Multiple choice 2. The value of real GDP in the current year equals the value of current-year output in prices of the base year. the value of current-year output in prices of the current year. the value of base-year output in prices of the base year. the value of base-year output in price

    Monopolistic Competition: Analyzing the Cost Function

    You are the manager of a monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2 (That's Q squared). a. What level of output should you choose to maximize profits? b. What price should you charge? c. What will happen in your market in the long run? Explain.

    Calculating the WACC

    Cookie Dough Manufacturing has a target debt−equity ratio of 0.63. Its cost of equity is 19 percent, and its cost of debt is 8 percent. If the tax rate is 33 percent, the company's WACC is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16.) HERE ARE SOME HINTS

    Price competition

    Chapter 18-2 The market for digital cameras is relatively new. Ajax Inc. produces what they regard as a high quality digital camera. Knockoff Inc. produces what they regard as low quality digital camera. However, since the market is so new, reputations for quality have not yet developed and consumers cannot tell the differenc

    Micro economics questions

    Question 1 Monopolistic competition differs from perfect competition because in monopolistically competitive markets a. each of the sellers offers a somewhat different product. b. there are barriers to entry. c. all firms can eventually earn economic profits. d. strategic interactions between firms

    Capital and Labor

    A firm produces output, y, by using capital, k, and labor, l, according to the production function. y=k^at^b The firm can purchase all the capital and labor it wants at prices r and w, respectively. a) Use the method of Lagrange multipliers to find the cost function c(r,w,y). Find the average and marginal cost. b)

    Profit-maximizing

    What is true at the profit-maximizing quantity for a non discriminating monopolist but not true of a perfectly competitive firm?

    Sophisticated Monopoly Pricing

    Sophisticated Monopoly Pricing 1. The Locust Corporation is comprised of a marketing division, and production division. The marginal cost of producing a unit of the firm's product is $10 per unit, and the marginal cost of marketing is $4 per unit. The demand curve for the firm's product is: P = 100 - 0.01Q Where P is the pr

    Monopoly and Monopolistic Competition

    The Madison Corporation, a monopolist, receives a report from a consulting firm concluding that the demand function for its product is Q=78 - 1.1P + 2.3Y +0.9A Where Q is the number of units sold, P is the price of its product (in dollars); Y is the per capita income (in thousands of dollars), and A is the firm's advertising

    Haverford Company and Roosevelt Laboratories

    1. The Haverford Company is considering three types of plants to make a particular electronic device. Plant A is much more highly automated than plant B, which in turn is more highly automated than plant C. For each type of plant, average variable cost is constant so long as output is less than capacity, which is the maximum