Given the following production function ,where x is an input and Q is output.Output sells for $10.00 per unit and inputs (X) are $20.00 per unit.Dtermine the optimal amount of input (X) to use in order to maximize profit.Q=10-.25X^2
1. When SRAC is declining, the firm experiences economies of scale. True False 2. A monopoly firm is a price taker. True False 3. Which of the following statements is NOT true? MC is a change of TC MC of labor is wage rate. A MC curve cuts through the minim
Factors to be considered to create a team-based, empowered organization
Operating Cash Flows. Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $120,000 per year. Direct production costs are $40,000 and the fixed costs of maintaining the lawn mower factory are $15,000 a year. The factory originally cost $1 million and is being depreciated for tax purposes over 25 years usi
M is a monopolist selling goods G. M's cost function is c(y)=4y where y is the total production of G. Some of M's potential customers are members and get a member magazine with coupons. Member demand curve: X1(p, C)=42-(p-C) where X1(p, C) is member demand, p-C is the price they actually pay, p the official price, and C is price
1) What might a firm maximize revenue instead of profit? 2) Let's discuss cartel. Discuss the conditions and costs of a cartel. What conditions make OPEC a cartel? Assess OPEC's viability.
a.) An isoquant shows that by varying input combination we can produce different quantities of output at the same cost. True or False? b.) If long run average cost is increasing, this means that a firm operates at increasing returns to scale. True or False? c.) If perfectly competitive market is monopolized then part o
A. ABC Technologies, Inc., enjoys an exclusive patent on a process to atomize gasoline with platinum in combustion engines, producing substantial gains in miles per gallon. Total and marginal revenue relations for the process are: TR = $250Q - $0.001Q2 MR = MTR/MQ = $250 - $0.002Q Marginal costs for the process are stable at
Answer to question from Michael Parkin Economics Text 7e. (attached)
How can you justify the existence of government-granted monopolies for such public utilities as local telephone service, natural gas distribution, and electricity in the light of the traditional economic argument that the more competition there is, the more likely it is that an efficient allocation of resources will occur?
In problem 4, Sue's surfboard buys a second plant and the total quantity of each quantity of labor increases by 50%. The total fixed cost of operating each plant is $200.00 a week. The wage rate is $100.00 a week. a. Set out the average total cost curve when Sue's surfboards operates two plants. b. Draw the long-run average
Just prior to the last round of negotiations with the Major League Player's Association, baseball commissioner Bud Selig broke open the books to show that major league baseball (MLB) had lost $1.4 billion during the previous 5 years. Worse yet, operating losses of more than $500 million per year on stagnant revenues of $3.
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if: a it increases revenue more than costs or reduces costs more than revenue b it decreases some costs more than
The level of an economic activity should be increased to the point where the __________ is zero. a marginal cost b average cost c net marginal cost d net marginal benefit e none of the above
1)a. Based on the following table, what is the profit maximizing output? Output Price Total Costs 0 $ 10 $ 31 1 10 40 2 10 45 3 10 48 4 10 55 5 10 65 6 10 80 7 10 100 8 10 140 9 10 220 10 10 340 b). How would your answer change if, in response to an increase in demand, the price of the good increased to
Four people: Person A whose profit is 84X-6X^2 Person B whose profit is $30-6X Person C whose profit is $75-10X Person D whose profit is $100-8X Person A has property rights, meaning they can set the value of X from 0 to 8. Each person must have the same cost of negotiation with each other. What is the minimum per perso
1. Provide an example of a monopoly, an oligopoly, and a cartel. 2. Discuss the welfare effects of monopolies and oligopolies. 3. Which actions you think OPEC will take over the next year?
1. Standard Enterprises produces an output that it sells in a highly competitive market at a price of $100 per unit. Its inputs include 2 machines (which cost the firm $50 each) and workers can be hired on as-needed basis in a labor market at a cost of $2,800 per worker. Based on the following production data, how many workers
In terms of currency denomination, discuss how Halliuburton prices its revenues and costs. For Halliburton, with multiple foreign operations, consider any one of those operations and the contribution it is making to the parent firm's profits.
Calculate the total change in a year's GDP: Tone Artists, Inc. produces 100,000 new White Snake CD's that it prices at $15 a piece. Ten thousand CDs are sold abroad, but alas, the rest remain unsold on warehouse shelves.
You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 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 per day. Although
Give an example of decreasing marginal opportunity cost, and explain.
Not sure how to apply the following proposed society's possibility curve to study questions. Output (per year) Possibility Food(millions of tons) Tractors(millions) A 0 30
Assume a firm is operating in a perfectly competitive product market where the price of its output can be sold at a price p=$10. The firm can hire any number of workers at a wage of W=$50. The total product (or short-run production function) is given by Q=100*L-2.5*Lsquared, and the marginal product of labor curve is MPL=100-5*L
1. (a) Using calculus, derive the relationship between a monopolist's marginal revenue, the monopolists' price, and the price elasticity of demand. (b) Consider a monopolist who produces output at a constant marginal and average cost of $12. The price elasticity for the monopolist's product is 3. Use your answer to (a) to find
A firm fixed cost are 0 outputs and its aveage total cost producing different output levels are summarized in the table below..... Complete the table to find the fixed cost, variable cost, total cost, average fixed cost and average variable cost and marginal cost. Q FC VC TC AFC AVC
Still dont know how to do this type of problem...... An industry consists of three firms with sales of $200,000, $500,000, $400,000. a. Calculate the Herfindal-Hirschmann index (HHI) b. Calculate the four-firm ratio. (C^4) c. Based on the US Dept. of Justic Mergers Guidelines do you think the dept would block the merger
A major car company (from Japan), announced a major restructuring plan. to attempt to reverse its 6 percent decline in sales. the company's North American sales were hard hit, where a 29 percent drop in sales. This because of bad loans and financing with banks. In Japan, sales dropped a 56 percent, due to recalls and attempts
1. Market demand for fortune cookies is given by P = 500 - Q, where Q is tons of cookies. There are two firms producing cookies at zero cost. a. Find each firm's fortune if the two collude. b. Find each firm's fortune if they act as rivals in a Cournot duopoly. c. Ditto if they act as competitors.
A firm has $1 Million in Sales, a Lerner Index of 0.65 and a marginal cost of $35 and competes against 1,000 other firms in its relevant market. a. What price does the firm charge it customers? Show formula to explain how do this. b. By what factor does this firm mark up its price over marginal cost? c. Do you thinkthis fir