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Output & Costs

Cost Structure of a Perfectly Competitive Firm

In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20. Given these facts, explain whether the following statements are true or false: a. The firm is currently producing

Quadratic Functions

If total cost, T(X), is related to output, X, by the equation: T(X) = 0.001X2 + 0.5X + 50 a.What is the variable cost function? b.What is the average cost function? If output is 100 units, find a.Total fixed cost; b.Total variable cost; c.Total cost; d.Average cost; e.Marginal cost of the 100th unit. A

Linear Equations in a Retailing Operation

In a retailing operation, total costs can be expressed as a function of total sales. A small store found recently that when their total sales increased form $1,000 to $4,000, their costs increased from $750 to $1,500. a.Which is the dependent variable and which is the independent variable? Explain. b.Assuming that a linear f

Econ ATC, MC less than, great than and equal

Total output Costs TFC TVC AFC AVC ATC MC 0 $100 $100 1 $150 $100 $50 $100 $50 $150 $50 2 $225 $100 $125 $50 $63 $113 $37.50 3 $230 $100 $130 $33 $43 $77 $1.67 4 $300 $100 $200 $25 $50 $75 $17.50 5 $400 $100 $300 $20 $60 $80 $20.00 Using the table above, explain what happens to

Solving a numerical on concepts of costs

Given the quantity and total fixed and variable costs, calculate the remaining costs the complete the following table. UNITS OF TFC TVC TC AFC AVC AC MC OUTPUT (Q) 0 100 0 10 100 50 20 100 80 30 100 103 40 100 120 50


I would like to clarified my mind with some accounting term and technical word, writting my problem in this way allow me to understand much better these concepts. 1) a property taxes is a conversion cost or period cost? 2)the difference between an estimat selling price for a product and its total unit cost represents: cont

Managerial Economics-Sunk costs

A local restaurateur whose business had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer, wine and spirits at the restaurant. The license cost $75,000. While the license is transferable, only $65,000 is refundable if the owner chooses not to use it. After selling alcoholic

Economics - Role of Cost Manager

I need to know some information about these question in at least 300 words 1) what does the cost manager do? 2) what information does the cost manager get and how does he use it? 3) what decision does the cost manager make about production and how does it affect shareholders? 4) when does the cost manager make these

Cost allocation

Subject:Economics, Cost-Benefit Analysis - OtherDescription:Follow the below posted informationProblem:Crafton Carbuckle began a corporate consulting firm, Creative Consumer Consultants, Ltd., in 1994. The firm specializes in assisting corporate clients analyze markets and promotional campai ...there is moreshow problemCrafton

Identify the type of market each statement describes

For each of the following statements, identify the type of market it describes. Use an example from the readings or the internet for each characteristic and explain your choice. A. The company practices product differentiation B. The firm earns an economic profit in the long run C. Maximizes profits by equating MC and MR D

Managerial Economics - Mimeo Corporation - Low end Photocopiers

An internal study at Mimeo Corporation-a manufacturer of low end photocopiers-revelaled that each of its workers assembles 3 photocopiers per hour and is paid $3 dollars for each assembled copier. Although the company does not have the resources needed to supervise the workers, a full time inspector verifies the quality of each

Price and Output decisions.

Problem 1: Apex, Inc. is a monopolist. The demand function for its product is estimated to be Q = 60 - 0.4P + 6Y +2A Where Q=quantity of units sold P= price per unit Y = per capita disposable personal income (thousands of dollars) A = hundreds of dollars of advertising expenditures The firm's average variable cost function

Simulation Analysis

Explain the following in the context of the simulation. o Create a solution using strategic variables available to you to sustain the economic profits the firm can earn. o What are some of the pricing strategies that you would recommend? o What are some of the nonpricing strategies that you would recommend? o

four firm concentration ratios

For the graph below: a. Does q0 represent the profit maximizing level of output? Yes or No. Explain. b. Is the firm making a profit or realizing losses? How do you know? c. Should the firm continue to operate in the short run? Explain 2. The top four firms in industry A have market shares of 30, 25, 10 and 5% res

Discussion Questions for paper

1. This question pertains to wages and salaries. I want to discuss the factors that determine professional athletes' salaries. 2. Identify a firm or type of business that periodically shuts down their operations. Identify the economic conditions that exist (e.g., fixed costs and variable costs vs. revenues) when they shut dow

Nothing is free

Master Card has a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceless, everything has a price. Take something from your experience, that is allegedl

Assume that the firm is a profit maximizer

Please help with the following problems. Provide step by step calculations. Hypothetical monopoly firm is characterized by the following diagram. (See attached file for diagram) a. Assuming that the above firm is a profit maximizer operating in the short run, determine its optimal output? This occurs where MR=MC and

Determining Profit Maximizing Price

Suppose there are three firms with the same individual demand function. This function is Q=1,000-40P. Suppose each firm had a diffeerent cost function these functions are: Firm 1: 4,000+ 5Q Firm 2: 3000 + 5Q Firm 3: 3,000 + 7Q What price should each firm charge if

Analyzing and Calculating Production Costs

Please refer attached file for better clarity of tables and expressions. 1. Consider the following table of numbers, which represents demand and cost conditions for a competitive firm. (a) Fill in the missing values. (b) What level of output should the firm produce? Explain. P = MR Q TFC AFC TVC AVC TC

Improve Profitability Incentive Pay

Incentive Pay at Handmade Scarves Individual artisans make fashionable scarves at Handmade Scarves. Each scarf sells for a price of $50. On average one hour of effort will produce one additional scarf. The monetary value (in dollars) of an artisan's output of scarves (Q) per period is a function of the artisan's level o

monopolistis quantity, price and profit

A monopolist has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000-10P. Marginal revenue is given by MR = 100 -1/5Q. Calculate the monopolist's profit-maximizing quantity, price and profit.

Answers two questions about opportunity cost.

1. Economists make decisions by thinking in terms of alternatives. Why do economists believe there is no such thing as a free lunch? 2. Another situation to think about: Should Michael Phelps mow his own lawn? Suppose Michael can mow his lawn in 30 minutes (due to his athletic ability) or he can hire a gardener who can do th

Monopolies, Oligopolies and Market Structure

I would appreciate any help that I can get with the following questions. 1. Patent laws a. reduce incentive to innovate by restricting market entry b. reduce incentive to innovate by making it difficult to use the patented innovation c. increase incentive to innovate by restricting entry into a marke

San Joaquin Community Hospital is a nonprofit hospital operated by the county.

San Joaquin Community Hospital is a nonprofit hospital operated by the county. The hospital's administration is considering a proposal to a new outpatient clinic in the nearby city of San Marco. The administrator has made the following estimates pertinent to the proposal: 1. Construction of the clinic building will cost $7800

Managerial Economics

Here is the information you need to answer the question. This information is taken from a graph. So you will need to draw the graph to answer the questions. The best level of output for the monopolist in the short run is 500 units and is given by point E where MR=MC. At Q=500, P=$11 and ATC=$8 so that the monopolist earns a prof

Cost of Capital & Debt

A. Generally, which of the following is true? (where rE is the cost of equity, rD is the cost of debt and rA s the cost of capital for the firm. A. rD> rA> rE B. rE> rD> rA C. rE> rA> rD D. None of the above is true B. If a firm is unlevered and has a cost of equity capital 9%, what would the cost of equity be

profit-maximizing, monopolist

5. Assume for a competitive firm that MC = AVC at $12, MC = ATC at $20, and MC = MR at $16. This firm will: A. realize a profit of $4 per unit of output. B. maximize its profit by producing in the short run. C. minimize its losses by producing in the short run. D. shut down in the short run. 9. If a non-discriminati

Opportunity Cost

Define the term "opportunity cost." Now that you have a definition of opportunity cost weigh the positives and negatives of taking a leave of absence from work and moving out of town to attend college full time, or maintaining your job while attending college. What is your conclusion?