13. Suppose that the firm's Production Data is given in the following schedule (where Q is the level of output). Workers Output Q (units) 0 0 1 600 2 1000 3 1290 4 1480 5 1600 6 1680 If P=$50 and w=$14,500, how many workers should the firm hire to maximize profits? Workers Output (Q) MPL 0 0 --- 1 600 600 2 10
A firm sells specialized electronic computers. Each of the computers has a unique chip produced at a California plant at cost of Cw(Qc)=Q^2 c [C subscript w *(Q subscript c)=Q squared subscript c.] Once produced, the chips are shipped to the firm's new jersey east coast plant where the computers are then assembled, packaged
1. At a product price of $56, will this firm produce in the short run? Why or why not? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output? 2. Answer the relevant questions of 4a assuming product price is $4
The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomoulsy. The plant has a capacity output of 200,000 calculators per year, and the plant's manager regards 75 percent of capacity as the normal or standard output. The projected total variable costs
Use an isoquant/isocost diagram and words to show how firms will respond to a decrease in the wage rate. Be sure to identify the short run scale effect and the long run substitution effect.
5. A certain company was trying to find the optimum number of workers to hire. Assuming that the price of each unit of output is $10 and that each worker must be paid a wage of $40 per day, how many workers should be hired. Additional Data: Workers hired: 0 1 2 3 4 5 6
Allied company machines produces an output that it sells in a highly competitive market at a price of $100 per unit. Its inputs include two machines (which cost the firm $50 each) and workers, who can be hired on an as-needed basis in a labor market at a cost of $2,800 per worker. Based on the following production data, how many
A company makes computer disks that consumers perceive as identical to those produced by numerous other manufacturers. The company now wants to estimate its cost function for producing boxes of one dozen disks. The estimated cost function is C=20 + 2Q^2 (2Q squared). If firms in the market sell the product ( a box of a dozen di
Consider the problem of maximizing the profit function (pi)= pY -wL subject to the production function Y= L to the alpha (as the exponent) where alpha E (epsilon) (0,1). derive the profit function and confirm that Hotellings Lemma is met. What happens if alpha = 1?
The short-run cost function of a company is given by the equation, TC=200+55q, where TC is the total cost and q is the total quantity of output, both measured in thousands. Suppose the company borrows money and expands its factory. Its fixed cost rises by $50,000, but its variable cost falls $45,000 per 1,000 units. The cos
1) During 2004, the national average gas price rose from $1.50 a gallon to $2.25 a gallon. The government has stated that the high price of gas was to remain as it is. Discuss how the cost influences your decision to buy a new car. Base3d on your budget, would you buy a large car that gets 7 miles per gallon or the car that gets
Kraft has a plant in the Alaska and Hawaii: The wage in Alaska is $5. The wage in the Hawaii is $20. Marginal product of the last worker in Alaska is 100 Marginal product of the last worker in the Hawaii. is 500 (Size of the plants or the amount of capital equipment is unchangeable). a. Is the firm maximizing output r
1. If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax? 2. a) Why are short-run marginal cost curves expected to slope upward? b) If you know that average costs are increasing, is the marginal cost
Please show steps to resolve these problems please use Lagrangian Multiplier if possible. 1. A manufacturer has the following production function: Q=100 K^. 2 L^. 9 If the price per unit of labor is $20 and the price per unit of capital is $10, a) What is the optimal combination of labor and capital to use in order t
See attached file for full problem description. 1. This graph illustrates the demand for computers in a small country. To develop a domestic computer industry, the government prohibits imports of computers and gives a single local firm the right to produce and sell computers. The demand curve shows the local demand for comput
An industry with one very large firm and 100 very small firms experiences an increase in the demand for its product. Use the dominant firm model to explain the effects on the price, output and economic profit of: a. The large firm b. A typical small firm
The average variable cost curve and the average total cost curve get closer to each other as output increases. What explains this? When would total cost equal fixed costs? If marginal physical product is continually declining, what does marginal cost look like and please explain this answer because I am having major troub
You manage a plant the mass produces engines by teams of workers using assembly machines. The technology is summarized by the production: q = 5KL Where q is the number of engines per week, K is the number of assembly machines and L is the number of labor teams. Each assembly machine rents for r = 10,000$ per week and each
Answer the following questions on the basis of this information for a single firm: total Cost of capital = $1000; price paid for labor = $12 per labor unit; price paid for raw materials = $4 per raw-material unit. a. Suppose the firm can produce 5000 units of out put by combining its fixed capital with 100 units of labor and
Suppose that a firm's production function is Q = 10 L 0.5 K 0.5 The cost of a unit of L is 20$ and user cost of capital is 80$. a) The firm is currently producing 100 units of output and has determined that the cost-minimizing quantities (short and long run) of L and K are 20 and 5 respectively. Graphically illustrate this
After tax cost of new debt and common equity....See attached file for full problem description.
GIVEN: TC(qi)=5 qi+10, i=12 P(Q)=20-2Q ASSUME: a cournot duopoly where Q=q1+q2 DEMONSTRATE: the total output is less than the competitive output but more than the monopoly; the duopoly price is more than the competitive price but less than the monopoly; the total profits are more for the duopoly than the com
How do the concepts of production possibilities and efficiency apply to electronics retail sales and your personal life?
Why does increasing the range of output over which economies of scale are present, influence the amount of monopoly power in an industry. Include graph(s) please.
Why are the profits of a price taking firm maximized when it produces a level of output where price is equal to marginal cost?
A business owner makes 600 items by hand in 200 hours. She could have earned $30 an hour working for someone else. If the item sells for $40 each, and the explicit costs total $8,000, then: a. total revenue equals $8,000. b. implicit costs equal $6,000. c. the accounting profits equal $10,000. d. the economic profit
Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales: Product Price Quality Demanded Total Revenue Marginal Revenue $2 0 $----------- 2 1 ------------ ---------------- 2 2 ----------- ------------------ 2 3 ----------- ---------------- 2 4 --
Explain if the following statements are true, false, or uncertain a. If average cost is increasing, marginal cost must be increasing b. If there are diminishing returns, the marginal cost curve must be positively sloped c. Marginal costs decrease as output increases because the firm can spread fixed costs over more units
1. If you were to run a company that made a realy cool gadget (e.g. MP3 player, all-in-one phone, pen-sized camera, etc.) and you decided it was time to enter the international market, which strategy would you utilize? (Export/import, Management Contracts, Licensing, Franchising, Joint Venture/Strategi Alliance, Wholly Owned S
Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4000per year if alternatively invested. He has offered $15000