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Output & Costs

In a competitive market, the market-determined price is $25

In a competitive market, the market-determined price is $25. For a typical firm producing 10,000 units of output, the firm's average cost reaches its minimum value of $25. Is this firm making the profit-maximizing decision? If not, what should the firm do? Question 8 answers No, it is not making the profit-maximizing decis

Rate of Output

ZZZ, Inc. operates in a monopolistically competitive industry. Its demand curve can be written as P = 160 - Q and its short run total cost curve is equal to TC = 1000 + Q^2. What is the rate of output that maximizes ZZZ, Inc.'s short run profits?

Two-Parts Tariff

A monopolist produces output with constant marginal and average cost of 10 $. There are two types of consumers (in equal numbers) that are potentially in the market for the good. Consumers of type A have a demand function of QA = 60 - PA , and consumers of type B have a demand function of QB = 60 -2PB. a. Suppose that the mon

Economic Output Variables

Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote, respectively, the quantity in hours of inputs X and Y used. At present Hernandez Corp.

Hernandez Corp with two variable inputs X and Y

Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote, respectively, the quantity in hours of inputs X and Y used. At present Hernandez Corp.

Profit Mazimization

Output Price Total Cost Total Revenue Marginal Revenue Marginal Cost Profit 0 $1,900 $1000 1 $1,700 $2000 2 $1,650 $2800 3 $1,600 $3500 4 $1,550 $4000 5 $1,500 $4500 6 $1,450 $5200 7 $1,400 $6000 8

Cost of production calculations and graphs

Total Output Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 280 1. Use the above table to answer the questions listed below. a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total co

Revenue (demand) and cost situation facing an individual firm

Please see attached. 8. Assume the table above shows the revenue (demand) and cost situation facing an individual firm. Further assume this firm has a Total Revenue equation that can be expressed as TR = 20Q. Based on that, answer the following. A. In the table above, fill in the missing values for Price, Total Revenue, Mar

Marginal Analysis

I need some help completing the following assignment: You have been hired to manage a small manufacturing facility, which has cost and production data given in the table below. Total Total Workers Labor Cost Output Revenue 1 $500

Massachusetts Tolls and Externalities

It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road; now they just provide cash for tax bureaucracy. A number of economists are opposing the repeal of tolls on the

Marginal revenue

Assume that the short-run cost and demand data given in the table in the attached file confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of output.

Jernigan Jerseys is a wholesaler distributing

Jernigan Jerseys is a wholesaler distributing various NFL, NBA, and MLB style jerseys of various quality to minor league and non-professional teams. Two weeks ago they sold 25 jerseys on account to the Canton Catfish varsity football team in Canton, Mississippi for $45 each with an inventory cost of $28 each. Last week seven o

Transactions for CMC (Calrissian Mining Company)

Please match the following transactions for CMC (Calrissian Mining Company) with the appropriate special journal. - Calrissian purchased $1,800 of merchandise on credit from Fett Co., terms n/15 - Calrissian paid salaries $87,425 in cash - Calrissian sold merchandise costing $1,492 on credit to Organa Industries for $1,776,

Using the PPF to model the Cold War

We can use the PPF model to analyze an "Arms Race" between nations to understand and interpret important political events in history. Draw a PPF for military goods and civilian goods production (similar to the traditional example of "guns versus butter"). Then draw another PPF for a country that is about twice the size of the

Economics

The WSJ recently presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C. The article quoted analysis saying that United should discontinue this service. The costs per flight (presented in the article) included the costs of fuel, pilots, flight attendants, food, e

Pricing decisions using third-degree price discrimination.

Pa = 100 - Qa for regular adults and Ps = 50 - 0.5Qs for seniors. Suppose the marginal cost of a round of golf is the same regardless of the age of the player, and MC = 10. a. How much should the course charge regular adults, and how much should it charge seniors.? b. This is an example of which type of price discrimin

Marginal Cost of E-Books

Consider the preferred prices of the authors and publishers of an electronic book, whose marginal cost of production is close to zero? Would the two disagree about the price to be charged for the book?

Optimization: output, marginal cost, average cost, price

Please help with the following problem. Optimization: Giant Screen TV, Inc, is a manufacturer and distributor of high-resolution 50-inch television monitors and consoles for individual and commercial customers. Revenue and cost relations are: TR = $4,500Q - 0.1Q^2 MR = $4,500 - 0.2Q TC = $2,000,000 + $1,500Q + 0.5Q^2 MC

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power

Pricing and Output Decision Making

Respond to the following: a. In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets. b. Cite as many examples as you can of these types of businesses. c. Explain why the profits of such firms tend to increase wh

Overhead Cost Discussion

Respond to the following: a. Suppose the following was overheard at the water cooler: "I think our medical device company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs." b. Would you agree with this statement (assuming this person is not your boss)? Why or why no

A perfectly competitive market

Please help with the following: Discuss how a company that is competing in a purely (or perfectly) competitive market should increase its competitive stance in the marketplace. Provide specific examples. Determine how a perfectly competitive firm can maximize its profit by producing the output at which average cost is min

Benefit Cost Ratio of a New Park

A new park has been proposed in a downtown business district. To build the park, several businesses will have to be reallocated. This process will disrupt the business for about six months and cause a loss of income of approximately $100,000. The new park will cost about $1,200,000 to build and will cost about $50,000 annually f

Fee-For-Service, Per Diem & Fixed Fees: Hospital Example

How will each of the following bases for hospital reimbursement affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of services (cost per service): a. fee-for-service reimbursement b. per diem reimbursement c. fixed fee per admission

Aggregate Supply in the short run and long run

Answer the following questions on the basis of three sets of data for the country of North Vaudeville: a. Which set of data illustrates aggregate supply in the immediate short-run in North Vaudeville? The short run? The long run? b. Assuming no change in hours of work, if real output per hour of work increases by 10 percen

Managerial Economics

The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with The Wall Street Journal, USA Today, and the New York Times for national news reporting, but the Star offers readers stories of local interest, such as local news, weather, high-school sporting events, and so on. The El Dorado S

Cartel Rationalized Agreements

(Coffee Pricing Agreement Dissolves amidst Dilemma) When coffee bean harvest is larger than projected, the top Colombia and Brazilian coffee producers along with several African and Central American smaller producers often agree in principle to withhold millions of tons of coffee beans from the market in an effort to raise c