The MRP of an input is... a) the selling price of the last unit of OUTPUT b) the increment of total revenue resulting from the use of an additional unit of input. c) used in determining marginal product d) harder to determine in pure competition than in monopoly e) harder to determine in pure competition than in o
If a viable monopolist must pay a new franchise tax ( a flat sum to operate), he will unless profits fall below zero: a) increase output. b) decrease output. c) lower price. d) make no change in price or quantity, but earn less profits e) raise price to keep profits at the same level.
See attached file: If the market price increases to $15, the firm (described in the attached chart) will: a) shutdown b) earn economic profits c) produce more than 10 units of output d) produce less than 10 units of output e) both b and c are correct
Suppose that a firm has the opportunity to employ a new machine that will increase production by five units and will cost $10 to purchase. If each unit of output can be sold for $5, then the: a) marginal revenue product of the machine is less than its cost, and the firm should not take advantage of the opportunity. b) mar
Suppose an imperfect competitor faces the demand schedule attached and its marginal cost is constant at $2. If the firm is able to produce any output level, then it maximizes profits at (see attachment)
If the productivity of variable factors is decreasing in the short-run: a. marginal cost must increase as output increases b. average cost must decrease as output increases c. average cost must increase as output increases d. marginal cost must decrease as output increases
88. If it is true that handling the mail does not get cheaper as the volume of mail increases, which of the following best explains this fact? A) The Post Office is run by the government and therefore is inefficient. B) The rule "the bigger the volume, the lower the cost" is true only if other things remain the same; since
A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is: A) -$2.00. B) $0.00. C) $1.00. D) $2.00. E) none of the above.
76. Given the curve shown below, the marginal product of labor will be maximized at: A) 0 units of output. B) 1 unit of output. C) 2 units of output. D) 3 units of output. E) not enough information to tell.
Please see attachment 73. Given the curves shown below, the marginal cost of the 3rd unit of output is: A) $6.00. B) $10.00. C) $16.00. D) $25.00. E) none of the above.
The decision to drop a major product line that is produced in large batches will likely affect which of the following types of costs? (a) unit-related costs only (b) unit-related and batch-related costs (c) batch-related costs only (d) unit-related, batch-related, and product-sustaining costs
Please show work: Payne and McGough Corporation produces 5,000 units of part WOW internally for use in the assembly of its finished products. The unit cost of part WOW is based on a production level of 5,000 units per week as follows: Variable Cost $20.00 Fixed Cost 10.00 Total Cost/unit $30.00 Part WOW
One long distance company controls 60% of the market. Two others divide up most of the rest, with company B having about 20%. A growing slice of the market is taken up by small no name firms offering rock bottom pricing. There are other new threats. Give a choice should Company A compete with Company B on price or other di
Marginal revenue product measures the: a. amount by which the extra production of one more worker increases a firm's total revenue. b. decline in product price that a firm must accept to sell the extra output of one more worker. c. increase in total resource cost resulting from the hire of one extra unit of a
2. Suppose you are the manager of Alpha Enterprises, a firm that holds a patent that makes it the exclusive manufacturer of bubble memory chips. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for bubble memory chips are Q = 25 - .5P; C = 50 + 2Q. a. What is the firm's i
2. A firm finds that at its MR = MC output, its TC = $1000, TVC = $800, TFC = $200, and total revenue is $900. This firm should: (1 point) a. shut down in the short run. b. produce because the resulting loss is less than its TFC. c. produce because it will realize an economic profit. d. liquidate its a
Subject: Average and Marginal cost curves. Details: Explain how each of the following events will affect the average and marginal cost curves of the firm. A. An increase in lease payments. B. A decrease in the cost of utilities. C. Stricter environmental regulations requiring installation of scrubbers on smokestacks. D
Please see the attached file for full problem description. --- Epren manufactures engine parts for an automobile manufacturer. It operates 2 plants, which have the following production functions: Plant A: Qa = 30Sa - 0.25 Sa2 Plant B: Qb = 40Sb - 0.50Sb2 where Qa is the unit output from plant A, Qb is the unit ou
The long-run aggregate supply curve is vertical at the economy's potential output level. Why is the long-run aggregate supply curve located at his level of output rather than below or above the potential output level?
Please see the attached file for full problem description. --- 4 The production of barstools (q) is characterized by a production function of the form a. Derive general expressions for average productivity of labor and capital for barstool production as functions of K and L. (Hint: By definition, = q/L and = q/K)
Please discuss the following concept using at least two examples: Explain the meaning of 'opportunity costs'.
Company A and Company B are soft drink companies operating in the same country for two decades. The market demand curve for their soft drinks is given by Q = 119 - 0.5P. Company A's short-run and marginal costs are given by STC = 3q2 + 48q + 572 and SMC = 6q + 48. Company B's short run total and marginal costs are given by STC
Please provide the solution to the following problem so that i can solve similar other. Please explain in detail as i need to understand. Cornell Pharamaceutical, INc., and Penn Medical , Ltd. supply generic durgs to treat a variety of illnesses. A major product for each company is a generic equivalent of an antibiotic used
Using the table attached, what quantity of output should the firm produce? Explain your answer.
Do you anticipate an earning or loss. I wanted all the calculations with the approach that you used.
Find economics marginal cost and total cost
Assume that firm A produces good G using only labor. Therefore, the firm's output is a function of the quantity of labor hired (i.e. output = q(L)). Assume further that this firm receives a price (p) for good G and pays laborers a wage (w) that are both constant, and that the firm pays a constant health care cost (h) for eac
4. What effect would each of the following have on a firm's short-run marginal cost curve and its total fixed cost curve? a. An increase in the wage rate b. A decrease in the property tax c. A rise in the purchase price of new capitol. d. A rise in energy prices. 5. Suppose that a firm's cost per unit of labor is $1