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    Output & Costs

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    Government Intervention and Externalities

    Can you please provide a real-world example of a product (a good or service) that has either an external cost or external benefit associated with it and propose a government policy to adjust for the over- or underproduction of this product.

    Manager of the only renting construction equipment in NY

    As manager of the only renting construction equipment in NY, it has been observed that the demand through Thursday to Saturday in much higher that it is on Sunday through Wednesday. The demand for equipment during the weekends is: P=10-0.1 Q And the demand during the weekdays is P =25-Q What pricing strategy you suggest t

    Managerial Economics

    Is the following sentences true or false and why (please give mathematical or graphical explanation when needed)? 1. Empirical studies often indicate that the long- run average cost curve for PC industry is J -shaped 2. a profit- maximizing monopolist will always choose on output in the short run where the average total c

    Engineers built a prototype carthat gets 180 MPG.

    Engineers built a prototype carthat gets 180 MPG.They estimate that a mass produced car will cost $40,000 per unit to build.The engineers argue that Congress should force US auto makers to build this energy efficient car. a) Is energy efficiency the same as economic efficiency? Explain b) Under what circumstances would the e

    Monopolist knows that if it expands the quantity of output

    A monopolist knows that if it expands the quantity of output it produces from 8 to 9 units, that will lower the price of its output from $2 to $1. Calculate the quantity effect and the price effect. Use these results to calculate the monopolist's marginal revenue of producing the 9th unit. The marginal cost of producing the 9th

    Describing the profit maximizing decision

    Can you please describe the profit maximizing decision a perfectly competitive firm makes in the short run and explain why this firm can make profits in the short run, but profits are not possible in the long run.

    The learning curve

    The learning curve is really no different from a marginal cost curve. calculates average cost at a particular point in time. shows the decrease in unit cost as more of the same product is produced over time. none of the above.

    The term "diminishing returns" refers to

    The .... is the increase in output obtained by hiring an additional worker. a. average product b. total product c. marginal product d. marginal cost my answer is D The term "diminishing returns" refers to a. falling interest rate that can be expected as one's investment in a single asset increases b. reduction in pro

    Strategic Decision Making in Oligopoly Markets

    Thomas Schelling, an expert on nuclear strategy and arms control, observed in his book The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960), "The power to constrain an adversary depends upon the power to bind oneself." Explain this statement using the concept of strategic commitment. In the 2000 US presid

    The internal rate of return on a project can be found

    1.The internal rate of return on a project can be found A.by discounting all cash flows at the cost of capital B.by averaging all cash inflows, and calculating the interest rate which will make them equal to the average investment C.by calculating the intersest rate whuch will equate the present value of all cash inflows to t

    ECON practice questions

    1. Which of the following is a relevant cost? A. Replacement cost B. Sunk Cost C. Historical Cost D. Fixed Cost E. All of the above are relevant costs 2. Which of the following cost relationships is not true? A. AFC = AC - MC B. TVC = TC - TFC C. the change in TVC divided by the change in Q = MC D. The change in TC d

    Prefect competition is characterized by

    Prefect competition is characterized by a. rivalry in advertising b. fierce quality competition c. the inability of any one firm to influence price d. widely recognized brands my answer is D Marginal revenue a. is the slope of the average revenue curve b. equals the market price in perfect competition c. is the

    Average total cost is

    Average total cost is a. the change in cost divided by the change in output b. total cost divided by output c. the change in output divided by the change in costs d. total cost times output my answer is A when an increase in the firm's output reduces its long run average cost, it experiences a. economic of scale b.

    Monopolistic Competitors

    The following schedule shows demand and total cost for a monopolistic competitor: Price Quantity Total Cost $30 10 $200 29 11 208 28 12 217 27 13 227 26 14 238 25 15

    NPV

    Your division is considering two projects with the following net cash flows: year Project A Project B 0 (25) (20) 1 5 10 2 10 9 3 17 6 a) What are the projects' NPVs,

    A producer is hiring 20 units of labor and 6 units of capital (Bundle A).

    A producer is hiring 20 units of labor and 6 units of capital (Bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. The producer is a. using the optimal combination of capital and labor b. should use more capital and less labor c. should

    Microeconomics - Cost Curves

    Problem A. I am having trouble with the attached self-exercises on pages 139 through 140. Quetions 1, 2,and 9 Please help. Problem B.Please help complete problems on pages P11 and P12 Nos. 1, 2, 3, 5, 6,and 7. And please use MS Excel software to graph problems 1 and 5.

    Relationship between P > AVC and a firm's contribution margin

    2a) Explain the relationship between P > AVC and a firm's contribution margin, when a firms is making a decision to shut down operations. 2b) Knowing that a profit maximizing firm would follow the MR = MC rule and in case of a perfect competitor P = MC rule; If a perfectly competitive firm has the following cost f

    Competitive markets

    1a) What are the characteristics of a Perfectly Competitive Market? 1b) What are the Characteristics of a Monopoly? 1c) Discuss why the demand curve faced by a Perfect Competitor is assumed to be perfectly elastic and that of a Monopolist less elastic.

    opportunity cost and a trade off

    Economists who work for the government are often called on to make policy recommendations. Why do you think it is important for the public to be able to differentiate normative statements from positive statements in these recommendations? Thank you

    Cost types

    Distinguish between the following types of costs: a) Historical Cost and Replacement Cost b) Opportunity cost and out-of-pocket cost c) Incremental cost and Sunk cost

    The learning curve

    The learning curve a. is really no different from a marginal cost curve. b. calculates average cost at a particular point in time. c. shows the decrease in unit cost as more of the same product is produced over time. d. none of the above.

    Diminishing Returns: Example Problem

    Discuss the concept of the law of "diminishing returns" and why does it occur only in the short run? Differentiate between "the long run return to scale" and "economies of scale."

    Determining the Total Fixed Cost

    At 6 units of output, marginal cost is $6, average variable cost is $5 and average total cost is $8. The total fixed cost at 6 units of output is?

    Profit, Cost, Competition

    Please see the attached file. MATCHING: Place only one letter in each space and use any one letter only once. One point each. ____ 1. Cause of increasing long-run A. Normal Profit average total costs