Explore BrainMass

Explore BrainMass

    Output & Costs

    BrainMass Solutions Available for Instant Download

    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

    Cost

    9. When a firm earns a normal profit, its revenue is just enough to cover both its ____________ cost and its ___________ cost. a. accounting; opportunity b. accounting; replacement c. historical; replacement d. explicit; accounting

    Microeconomics:

    A fashion firm makes outfits using two inputs, design skills( L) and expensive materials (M). The cost of fabrication is small and may be ignored as a first approximation. At current output levels, the unit input costs are: CL =£20 and CM =£4. The marginal products are: MPL =50: MPM =8. Is the firm operating efficiently i

    Production Function (Capital/Labor) Ratio

    Can you please give some hints, even if you can't help with the final solution. Thank You! Given the production function Q= 100(L^0.5)(K^0.5), where L = labor hours per unit time, K=machine hours per unit time, and Q=output per unit time. 1. If the price of capital and labor are equal, will the K/L ratio along the expansio

    number of supervisors

    6. The output of workers at a factory depends on the number of supervisors hired (see table below). The factory sells its output for $0.50 each, it hires 50 production workers at a wage of $100 per day, and it needs to decide how many supervisors to hire. The daily wage of supervisors is $500, but output rises as more supervisor

    Solving Cost Analysis Problems

    See attached file for full problem description. Quantity Total Cost Fixed Cost Variable Cost (VC) Average Fixed Cost (AFC) Average Variable Cost (AVC) Average Total Cost (ATC) Marginal Cost 0 3 6 1 5 6 2 8 6 3 12 6 4 17 6 5 23 6 6 30 6 7 38 6 8 47 6 Find the VC, AFC, AV

    Returns to scale

    Provide one business example for increasing returns to scale and decreasing returns to scale respectively. How does this characteristic affect its business strategies? Justify your arguments.

    Allocating Production Resources at American Company

    #1) An American Company that sells consumer electronics products has manufacturing facilities in Mexico, Taiwan, and Canada. The average hourly wage, output, and annual overhead cost for each site are as follows: Mexico Taiwan Canada Hourly wage rate

    Average Cost

    Assuming this firm is a short-run profit-maximizer or loss-minimizer. which statement best describes its present situation? See attached file for full problem description.

    Monopolist's demand function

    30) A monopolist's Demand function is P = 1624 - 4Q, and its Total Cost function is TC = 22,000 + 24Q -4Q2 + â…“Q3, where Q is output produced and sold. At what price (P) should the monopolist shut down?

    Pricing and Output

    Suppose three firms face the same total market demand for their products. The demand is P Q $80 20,000 70 25,000 60 30,000 50 35,000 Suppose further that all three firms are selling their product for $60 and each has about one-third of the total market. One of the firms, in an attempt to gain market share at the

    Marginal Cost-Revenue

    In economics, when you plot cost and revenue on the Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue. This is a crucial notion to understand. Without it one can't effectively analyze profits. Does this make sense?

    Maximization of Profits

    It costs Dan's company C(x) = x^2 - 3x + 64 dollars to produce x items. The selling price (p) when x hundred units are produced is p(x) = (44 - x)/4. Determine the level of production (# of items produced) that maximizes profit.

    Output Effect

    The output effect of an increase in the wage comes about because higher wages: a) increase production costs, and final good prices will rise, reducing the quantity demanded of the product b) increase production costs, and final good prices will rise, increasing the quantity demanded of the product c) make labor less expensive

    Production Cost and Wages

    Complete the statement with increase or decrease. According to the output effect, a decrease in the wage will __________ production costs, thus the price of final goods will __________. The quantity of final goods produced will ___________, thus the demand for labor increase.

    Demand Function

    The Demand Function for a product can be as Q=400-2P. We would have a fixed cost for this product as 200 and our variable costs are 0.5 per unit. Please let me know the equation for the profit. When is profit maximized? What is the maximum profit?

    Estimations of production

    a. Calculate the marginal product of labor. b. At what point does diminishing returns set in? c. Calculate the average product of labor. d. Find the three stages of production. See attached file for full problem description.

    Demand for labor from the production function Q = 12L - L^2

    Suppose a firm's production function is given by Q = 12L - L^2 for L = 0 to 6, where L is labour input per day and Q is output per day. Derive and draw the firm's demand for labour curve if the output sells for $10 in the competitive market. How many workers will the firm hire when the wage rate is $30 per day? (Hint: The mar

    Price/Output Determination and Competition

    Price/Output Determination. Tallahasse Cars Unlimited, Inc., a rapidly expanding new entrant to this area, is considering two proposals for the provision of its cosmetic detailing of cars (washing, waxing, polishing, engine cleaning, etc.). First, a large janitorial agency with some experience in the detailing of cars has offe

    Profit Maximization

    Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC) profit (ח) and marginal profit (Mח) in the following table. See attached file for full problem description. A. At what output (Q) Level is profit maximized? B. At what out put (Q) level is re

    Profit Maximization for Missing Price

    Fill in the missing data for price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC) profit (ח) and marginal profit (Mח) in the following table. Q P TR MR TC MC π M π 0 $230 $0 $-- $0 $- $0 $- 1 210 10 200 2 380 20 150 3 170 130 30 450 4

    Price and Output Determination

    Price/Output Determination Cold Case, Inc., produces beverage containers used by fast food franchises. This is a perfectly competitive market. The following relation exists between the firm's beverage container output per hour and total production costs: Total Total Output Cost 0 $

    Price/Output Determination

    Tallahassee Cars unlimited, Inc., a rapidly expanding new entrant to this metropolitan area, is considering two proposals for the provision of its cosmetic detailing of cars (washing, waxing, polishing, engine cleaning, etc.) First, a large janitorial agency with some experience in the detailing of cars has offered to purchase t

    advantages and disadvantages of an industrial ecosystem

    1. Assume you are a city planner working on a new industrial park and contemplating the use of an industrial ecosystem. Discuss the major advantages and disadvantages of an industrial ecosystem that you would consider in making your decision.

    Monoply Profit

    Pavati Fluid Controls, Inc, (PDC) is a major supplier of reverse osmosis and ultra-filtration equipment, which helps industrial and commercial customers achieve improved production processes and a cleaner work environment. The company has recently introduced a new line of ceramic filters that enjoy patent protection. Are relev

    Should the company shut down?

    I need to determining if an unprofitable firm should shut down its unprofitable operation. The firm currently uses 70,000 workers to produce 300,000 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 inputs is $500,000 per day. Although you don't