Given the output and total Cost Data in the table below, complete the following columns: variable cost, fixed costs, marginal costs,average total columns, then on a graph, plot the marginal and average costs data (plot them on the same graph, not on two different graphs). Then from graph identify the level of output at which
The Bureau of Labor Statistics showed an astonishing 5 percent gain in productivity in 2001â??s fourth quarter. Some argued that technology had again made the economy more productive than ever before. White-collar workers are more likely to argue that the gains have been made on their backs. The recessionâ??s layoff survivors
A revenue optimization problem that is similar to the one studied in the fashion retailer session. A product manager is responsible for selling 2000 units of a fashion retail item over a period of 15 weeks.
A firm uses two variable inputs, labor (L) and raw materials (M), in producing its output. At its current level of output: CL = $10/unit MPL = 25 CM = $2/unit MPL = 4 a) determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given level of output. b)
1- what is the law of diminishing returns? Give discriptive example? 3- distinguish between explicit & implicit costs, giving example of each. What are the explicit & implicit costs of attending college?? Why does the economist classify normal profit as a cost??
Please provide assistance. 1. Pick any organization; determine what strategy you would recommend for the organization in terms of pricing, non price barriers to entry and product differentiation? 2. Explain which market structures are price makers and price takers. What is the difference in the demand curves and why. 3.
Carolina Textiles, Inc., is a small manufacturer of cotton linen that it sells in a perfectly competitive market. Given $100,000 in fixed costs per day, the daily total cost function for this product is described by: TC = $100,000 + $2Q + $0.0625Q2 MC = dTC/dQ = $2 + $0.125Q where Q is units of cotton linen produced
Degree of Operating Leverage. Untouchable Package Service (UPS) offers overnight package delivery to Canadian business customers. UPS has recently decided to expand its facilities to better satisfy current and projected demand. Current colume totals two million packages per week at a price of $12 each, and average variable co
Please use the attached scenario to help answer the four questions below: Identify whether the change in the price of the database is a fixed or variable cost Describe how total, average, variable, and marginal costs will change after the change in the database price Identify whether the rent increase is a fixed or vari
I need help with the following problem. Units of Resource Resources Total Output Price ResourcePrice 1 10 $5 $10 2 25 $5 $10 3 35 $5 $10 4 40 $5
3. How does the demand curve faced by a purely monopolistic seller differ from that confronting a purely competitive firm? Why does it differ? Of what significance is the difference? Why is the pure monopolistâ??s demand curve typically not perfectly elastic? 5. Suppose a pure monopolist is faced with the demand schedul
You are advising a friend who has a decision to make regarding Social Security. He is about turn 62 years old, and is eligible for early Social Security benefits. His early benefits would amount to $677 each month. However, he knows that if he waits until he is 65, his monthly benefits would be $875 a month. According to the
Stanford Plastics, Inc. and Cal-Tech Associates, Inc. supply a generic phone jack that connects telephone cords to phone outlets. Proprietary cost and output information for each company reveal the following relations between marginal cost and output: MCS=dTCS/dQ=$1+$0.00002QS (Stanford) MCC=dTCC/dQ=$1.50+$0.000005QC
Average Cost Minimization. Better Buys, Inc., is a leading discount retailer of wide-screen digital and cable-ready plasma HDTVs. Revenue and cost relations for a popular 55-inch model are: TR = $4,500Q ï? $0.1Q2 MR = ï?TR/ï?Q = $4,500 ï? $0.2Q TC = $2,000,000 + $1,500Q + $0.5Q2 MC = ï?TC
You are the general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year. The sales manager of your company has identified only one potential client, who has received several quotes for 10,000 new PCs. According to the sales manager, the cl
Southcoast Oil's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. (a) Determine the breakeven output (in dollars). (b) Determine the number of barrels of oil that offshore must produce and sell in order to earn a
Discuss problems with market structures, oligopoly, monopoly etc.
Webmasters.com has developed a powerful new server that would be used for corporationsâ?? Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year's projec
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given by Q = K^(1/2)*L^(1/2) and that capital is fixed at 1 unit. a. Calculate the average product of labor when 9 uni
Please show how the problem was solved. An accountant for a car rental company was recently asked to report the firm's cost of producing various levels of output. The accountant knows that the most recent estimate available of the firm's cost function is C(Q)=100+10Q+Q(squared) Costs are measured in 1,000's of dollars & out
You are a manager for Herman Miller-a major manufacturer of office furniture. You recently hired an economist to work with engineering and operations experts to estimate the production function for a particular line of office chairs. The report from these experts indicates that the relevant production function is: Q = 2K^(1/2
Letâ??s say a perfectly competitive firm is making losses and needs to determine whether it should SHUT DOWN or CONTINUE TO OPERATE. The firm currently produces 400 units of output per day and uses 70 workers. The daily wage per worker is $100, and the price of each unit of output is $20. The cost of other variable inputs is $6
Joy Land Toys, a toy manufacturer, is experiencing quality problems on its assembly line. The marketing divisions estimates that each defective toy that leaves the plant costs the firm$10, on average, for replacement or repair. The engineering department recommends hiring quality inspectors to sample for defective toys. In this
First graph - draw the total cost curves (FC, VC, and TC) in ONE diagram. You also need to label all the axes correctly and place the legend at the bottom of your diagram. Second graph-draw the average cost curves (AFC, AVC, and ATC) plus the marginal cost (MC) in ONE diagram. Label all the axes correctly and place the legend
1. Which of the following describes an externality and which does not? Explain the difference. a. A policy of restricted coffee exports in Brazil causes the U.S. price of coffee to riseâ?"an increase which in turn also causes the price of tea to rise. b. An advertising blimp distracts a motorist who then hits a telephone pole
Farm fresh, Inc, supplies sweet peas to canneries located throughout the Mississippi River Valley. Like many gain and commodity markets, the market for sweet peas is perfectly competitive. With $250,000 in fixed costs, the company's total and marginal costs per ton (Q) are TC = $250,000 + $200
Please assist with the following questions. Please show work and calculations in Excel. 1)Ethier Enterprise has an unlevered beta of 1.25. Ethier is financed with 35% debt and has a levered beta of 1.35. If the risk free rate is 6% and the market risk premium is 7%, how much is the additional premium that Ethier's shareholders
Three fans are to be installed at a mine site; one immediately at a price of $260,000, one in five years at an estimated cost of $310,000 and the third in eight years at a cost of $480,000. Determine the total expenditure as a present value if the annual interest rate is 10%.
A coal stripping company currently operates three dozers for reclamation work. To reduce costs three alternatives are being considered for the future: rebuild the present equipment, purchase new dozers and employ a contractor. Details of the alternatives are given overleaf: Rebuild Purchase
The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses. (a) How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer? (b) Draw two graphs, side by side, illustr