Johnson Inc. is notified that local property taxes have increased. Johnson's economist states this will increase our cost of production and shift up our average total cost curve, average variable cost curve, and marginal cost curve. Is this true? Carefully Explain.
Problem: The Electro Corporation, which manufactures television sets, has a fixed cost of $1 million per year. The gross profit from each TV set sold-that is, the price less the average variable cost is $20. The expected value of the number of sets the company sells per year is 100,000. The standard deviation of the number
3. In a perfectly competitive market your firms cost curve is: TC = 200 + 50Q + 2Q2 If the market price for the product is $150 what is the optimal quantity for your company to produce?
Cost of capital is 12%. Its expects aftertax cash flows (including the tax shield from depreciation) for the next 5 years are: Year 1 $ 10,000 Year 2 20,000 Year 3 30,000 Year 4 20,000 Year 5 5,000 a) Calculated the NPV. b) calculate the IRR c) Would you accept the project?
Please see the attached file. Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. 9. What is average variable cost? a. $0.63 b. $1.60 c. $3.20 d.
How does an economy accounts for its success? Give the different measures of the national income, adjustments that must be made for accuracy, and why accounting is necessary.
Please Provide an Elaborate answer as long as possible. I need to understand these concepts for future exams and i cannot answer such questions. (a) Explain what is meant in the Heckscher-Ohlin theory by (i) The relative factor intensity of a commodity, (ii) the relative factor abundance of a country. (b) How ar
See Attached File.
1. A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + .5Q. Determine the profit-maximizing level of output. 2. A perfectly competitive firm's lowest average total cost is $48 and the corresponding average variable cost at that output is $24. Marginal cost and average variable cost are equ
A potential entrant can produce at the same cost as the monopolist illustrated in the figure on the next page. The monopolist's demand curve is given by Dm, and its average cost curve is AC A. What level of output does the monopolist have to produce in order for the entrant to face the residual demand curve, Dr? B. How much pr
An analyst in the production department for Chevrolet Caprice stated that "The marginal cost of a Caprice, given our current volume, is $12,500. Of course, the actual marginal cost depends on the number of cars produced. The larger the number produced, the lower the unit cost because we will spread out our design and tooling cos
6. What portion of the marginal cost curve is the competitive firm's supply curve? How is a competitive firm's marginal cost curve related to the market supply curve?
Assume labor costs are 17.5% of revenue per vehicle for General Motors. In union negotiations during the late 1990s, GM attempted to cut its workforce to increase productivity. Together with the job reductions they planned, GM officials hoped to make the company's North American operations fully competitive with its U.S. and Ja
A few detailed paragraphs please
1. Government intervention may be required to correct market outcomes because of: a) externalities b) market power c) public goods d) all of the above 2. The optimal mix of output may not be produced by an economy because of the existence of: a) monopolies b) externalities c) public goods d) all of the abo
Refer to the attachment. For a perfectly competitive firm, at a market price of $23, profit per unit is maximized at an output of: a)13 units b) 25 units c) 31 units d) 39 units e) 40 units
Refer to the attachment for a perfectly competitive firm. at a market price of $23, profit per unit is maximized at an output of: a)13 units b) 25 units c) 31 units d) 39 units e) 40 units
An oligopoly exists with two firms, A and B. The demand function for these oligopolists is Q=1000-40P. a. If firm A's cost function is TC=3000+7Q, what quantity (Qa) will it produce and price (Pa) will it charge to maximize profits? b. If firm B's cost function is TC=3000+5Q, what is this firm's profit or loss? c. Which
A profit-maximizing firm operating in perfectly competitive output and input markets will be using the optimal amount of an input at the point at which the monetary value of the input's marginal product is equal to the additional cost of using that input - in other words, when MRP=MLC." Based on the theory above, please expla
1. Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. Also assume that total labor costs to the firm are $45,000 annually. Assume further that the total capital stock of the firm is currently worth $100,000, that the return available to investors with
(Prob. 1: Productivity) A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% with less material, but one additional worker required. Under old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previou
6. Merger Gains. Acquiring Corp. is considering a takeover of Takeover Target Inc. Acquiring has 10 million shares outstanding, which sell for $40 each. Takeover Target has 5 million shares outstanding, which sell for $20 each. If the merger gains are estimated at $25 million, what is the highest price per share that Acquiring
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 20%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i
See attached file for full problem description. You have just been hired as a managerial accountant. You are responsible for variance analysis for direct materials required in the manufacturing of polo mallets. An old college friend called and asked you to lunch. You raced out the door before finishing the cost analysis fo
Explain the essential difference between a Pigouvian tax and the so-called standards-charge approach to pollution. You will recall that the standards-charge approach sets out to achieve a target (eg. a limit on SO2 emissions) by using a charge (price) on emissions.
See attached file for full problem description. E6-7 Shynee Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or it can be processed further and sold for a
The market demand curve is QD= 50 - P. The marginal cost curve is MC = 4Q + 6. a. Assuming the marginal cost curve is for a competitive industry as a whole, find the profit-maximizing level of output and price. b. Assuming the marginal cost curve is for only one firm which comprises the entire market, find the profi
Your manager comes in with three sets of proposals for a new production process. Each process uses three inputs: land, labor, and capital. Under proposal A, the firm would be producing an output where the MPP of land is 30, labor is 42, and capital is 36. Under proposal B, at the output produced the MPP would be 20 for land, 35
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-efficient.
When Burton Denson graduated with honors from the American Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his revenues were typically $25,000 per month, while his expenses (fuel, maintenance, and depreciation) amounted to only $18,000 per month. T