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Output & Costs

Finding optimal number of workers

Based on the below information, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire? Number of workers Output 0 0 1 50 2 110 3 300 4

Supply of money in the market notes

"Poor people are poor because they do not have very much money. Yet, central bankers keep money scarce. If poor people had more money, poverty could be eliminated." Evaluate the statement. Be sure to indicate whether or not you believe the statement is true, false, or uncertain. Just one or two paragraphs should be enough. Pl

I need help with the steps to figure out the answer to this problem.

I need help with the steps to figure out the answer to this problem. PRODUCTION ANALYSIS AND COMPENSATION POLICY / COST ANALYSIS AND ESTIMATION Marginal Rate of Technical Substitution. The following production table provides estimates of the maximum amounts of output possible with different combinations of two input fact

Cost of Equity/Cost of Capital & Common Stock

Byron Corporation's present capital structure, which is also its target capital structure, is 40% debt ad 60% common equity. Next year's net income is projected to be $21,000 and Bryan's payout ratio is 30%. The company's earnings and dividends are growing at a constant rate of 5%; the last dividend (D0) was $2.00; and the curre

Breakeven point

A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?

Profit under monopolistic competition

Suppose a firm in monopolistic competition has the following demand schedule. Suppose the marginal cost is a constant $70. How much will the firm produce? Is this a long- or short-run situation? If the firm is earning above-normal profit, what will happen to this demand schedule? Price Quantity Price Quantity --------------

Business Case: The Ratio of Marginal Product

You were recently hired to replace the manager of the Roller Division at a major conveyor manufacturing firm, despite the manager's strong external sales record. Roller manufacturing is relatively simple, requiring only labor and a machine that cuts and crimps rollers. As you begin reviewing the company's production information,

Production Cost Calculations: Production And Perfect Competition

A firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm's output is $25. The cost of other variable inputs is $400,000 per day. Although you do not know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed it

Perfect Competition

Cost figures for a hypothetical firm are given in the attached spreadsheet. Use them for the exercises below. The Firm is selling a perfectly competitive market. a. fill in the blank columns b. What is the minimum price needed by the firm to break even? c. What is the shutdown price? d. At a price of $40, what ouput level

Marginal Output and Productivity

Imagine there are 100 firms in a perfectly competitive industry. Each produces an output, q, using labour L and capital K according to the following short-run production function: q = 5 + 4L - .25L2 + K Each firm currently has five units of K. The price of each worker is $50 per day. The price of capital, K, is $100 per day. S

Average and marginal cost schedules

Given the following total-cost schedule: Q 0 1 2 3 4 TC 1 12 14 15 20 Derive the average- and marginal-cost schedules. Please explain answers and show work.

Accept the Order: Decisions

7. General Medical makes disposable syringes for hospitals and doctor supply companies. The company uses cost-plus pricing and currently charges 150 percent of average variable costs. General Medical learned of an opportunity to sell 300,000 syringes to the Department of Defense if they can be delivered within three months at


10. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $20 per unit. Complete the following table, and then answer the accompanying questions. (1) (2) (3) (4) (5) (6) (7) K L Q MPK APK APL VMPK 0 5 0


Please see the attachment. 1) You are in the process of purchasing a used min-van that will cost you $12,899. The dealership is offering you either a $500 rebate (applied toward the purchase price) or 2.9% financing for 60 months (with payments made at the end of the month). You have been pre-approved for an auto loan

Cost Analysis

The Goldberg-Scheinman Publishing Company is publishing a new managerial economics test for which it has estimated the following fixed and average variable costs: Total Fixed Costs: Copy editing - 10,000 Typesetting - 70,000 Selling and promotion - 20,000 Total fixed costs = 100,000 Average Variable Costs:

Cost Analysis

I am terrible at this subject. I cannot figure out where to start with this problem. The book is no help to me at all. Airway Express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers. The plane makes no other trip. The c

Microeconomics: Market Structure Questions

1. Firms under perfect competition receives zero profit, because a. There are too many firms to compete. b. There are no barriers to entry. c. There is complete information. d. The firms' products are identical. e. All of the above. 2. Under perfect competition, a firm maximizes its profit by setting a. P = MC because P

Marginal Costs Problem (See attached)

Exercise 1 (Marginal Costs): Kevin's Majestic Cookies (See attached) I could use help on figuring out how to start and finish this assignment. Please post directions in order to aid me on the direction of the answers. Please graph the last portion.

Economic Scenario

Two partners who own Progressive Business Solutions, which currently operates out of an office in a small town near Boston, just discovered a vacancy in an office building in downtown Boston. One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher r

Inverse Market Demand Curve

You are the manager of a firm that has an exclusive license to produce your product. The inverse market demand curve is P = 900-1.5Q. Your cost function is C(Q)=2Q+Q^2. Determine the output you should produce, the price you should charge, and your profits.

Should I start a new business?

I am exploring the option of starting my own business. In addition to creating a business plan (which I am not quite sure how to do), I am reviewing factors and costs. What should be the 10 most important factors and costs and further, name 3 implicit and 3 explicit costs to consider. I have what I believe to be good options

Cost-Plus Pricing at Wendel Stove Company

Cost-Plus Pricing. Wendel Stove Company is developing a "professional" model stove aimed at the home market. The company estimates that variable costs will be $2,000 per unit and fixed costs will be $10,000,000 per year. Required a. Suppose the company wants to set its price equal to full cost plus 30 percent. To determine

Microeconomic Problem: Analyzing Production Functions

Making dresses is a labor-intensive process. Indeed, the production function of a dressmaking firm is well described by the equation Q=L-L^2/800, where Q denotes the number of dresses per week and L is the the number of labor hours per week. The firm's additional cost of hiring an extra hour of labor is about $20 per hour (wage

Production Function

Suppose that the production of crayons q is conducted at 2 locations and uses only labor as an input. The production function in location 1 is given by q1=10L1 1/2(exponent) and location 2 by q2=50 L2 1/2(exponent). a. If a single firm produces crayons in both locations, then it will obviously want to get as large an output a

Micro Economics

Please show your work so I can gain an understanding of the process. Thanks

Average vs marginal productivity

What is average productivity? What is marginal productivity? Explain the relationship between marginal and average productivity. What would happen to marginal and average productivity if a technological innovation is introduced to the production process? Provide examples (numerical and graphical if you can) to explain your answe


Presented below are a number of accounting procedures and practices in Sanchez Corp. For each of these items, list the assumption, principle, information characteristic, or modifying convention that is violated. 1. Because the company's income is low this year, a switch from accelerated amortization to straight-line amortizatio