1. Use the "graph attached" What is the firm's Total Revenue at the profit maximizing level of output 32 0 16 8 14 Not enough information 2. Use the "graph attached" What is the firm"s Total Profits at the profit maximizing level of output? 0 32 16
Please help with the following economics problem. Provide step by step calculations. You are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is c=40 + 5Q2. The profit maximizing output for your firm is one of the following: 4/5 10 5 45 Suppose a m
Fill in the blanks in the following spreadsheet showing the short-run costs for a firm. Use the completed spreadsheet to answer multiple choice questions 1 through 5. Fill in the blanks Average Average Average Q Total Total Fixed Total Fixed Var
Use the attached graph to answer the following questions a) what is the monopolist's profit-maximizing output? b)At the profit-maximizing output rate, what are the monopolist's average total cost and average revenue? c) At the profit-maximizing output rate, what are the monopolist's total cost and total revenue? d) What i
Public Goods Thelma and Louise are neighbors. During the winter, it is impossible for a snowplow to clear the street in front of Thelmaâ??s house without clearing the front of Louiseâ??s. Thelmaâ??s marginal benefit from snowplowing services is 12-Z, where Z is the number of times the street is plowed. Louiseâ??s margi
Please refer attached file for better clarity of tables. Complete the following table and answer the accompanying questions. A.) At what level of the control variable are net benefits maximized? B.) What is the relation between marginal benefit and marginal cost at this level of the control variable? Q B(Q) C(Q)
Nowhereistan is a poor country in an island in the middle of nowhere. It produces only apples, bananas and oranges. The following are the data for 2009 (base year) and 2010 Fruit Quantity 2009 Price 2009 Quantity 2010 Price 2010 Apples 3000 bags $2 per bag 4000 bags $3 p
Please refer attached file for graphs. With reference to the isocost curve and isoquant below, and the knowledge that labor costs $150 per unit, answer the following questions: a. What is the price of capital? b. What is the equation of the isocost curve? c. What is the slope of the isocost curve? d. If the marginal pro
The Los Angeles retail market for unleaded gasoline is fiercely price competitive. Consider the situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $2.50 per gallon and total cost (TC) and marginal cost (MC) relations are: TC = $156,250 + $2.25Q + $0.0000001Q2 MC = dTC/dQ
Please refer attached file for better clarity of table. Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue. Price Quantity Price Quantity 100 1 70 5 95 2 55 6 88 3 4
Total Output (Q) Total Price (P) Total Revenue (TR) Total Cost (TC) 0 1900 0 1000 1 1700 1700 2000 2 1650 3300 2800 3
You are the manager that sells a commodity in a market that is, for all intents and purposes, a perfectly competitive market. Your cost function is TC = C(Q) = 50+0.01*Q^2. Your marginal cost function is MC(Q) = 0.02*Q. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain wh
Restaurant Marketing Services, Inc., offers affinity card marketing and monitoring systems to fine dining establishments nationwide. Fixed costs are $600,000 per year. Sponsoring restaurants are paid $60 for each card sold, and card printing and distribution costs are $3 per card. This means that RMS's marginal costs are $63 per
Dot.com Products, Inc., offers storage containers for fine china on the Internet. The company is the low-cost retailer of these quilted boxes with fixed costs of $480,000 per year, plus variable costs of $30 for each box. Annual demand and marginal revenue relations for the company are: P=$70-$0.0005Q MR=dTR/dQ = $70- $0
You work for a drug manufacturing company that holds a patent on Hair Grow, the world most effective drug for restoring hair. Your job is to analyze the pricing and investment decisions facing the firm. Your marketing group estimates that Hair Grow has the following demand curve:
Toys unlimited LTD., must forecast sales for a popular adult computer game to avoid stockouts or excessive inventory charges during the upcoming Christmas season. In percentage terms, the estimates that game sales fall at double the rate of price increases and that they grow at triple the rate of customer traffic increases. Furt
From figure 12-5 referring to a natural monopolist, indicate: a. The best level of output, price, and profits per unit and in total for the monopolist b. The best level of output and price with a lump sum tax that would eliminate all the monopolist's profits c. The best level of output, price, and profits per unit and in tot
Answer the next question on the basis of the following information for a firm operating in an imperfectly competitive market: Output------------Price------------Total Cost ----0--------------$500---------------$250 ----1--------------$300---------------$260 ----2--------------$250---------------$290 ----3--------------$
As manager of Citywide Racquet Club, you must determine the best price to charge for locker rentals. Assume that the (marginal) cost of providing lockers is 0. The monthly demand for lockers is estimated to be: Q= 100-2P where P is the monthly rental price and Q is the number of lockers rented per month. a. What price wou
A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q. a. Find the firm's profit-maximizing price and quantity. What is its profit? b. The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claim
There are three consumers of a public good. The demands for the consumers are as follows: Consumer 1: P1 = 60 â?" Q Consumer 2: P2 = 100â?" Q Consumer 3: P3 = 140 â?" Q where Q measures the number of units of the good and P is the price in dollars. The marginal cost of the public good is $180. a) What is the economic
1. Answer the following question based on the following info. Alta Zorn Alta Zorn Year (real GDP) (real GDP) (population) (population) 1 $2.000 $150,000 200 500 2 $2,100 $152,000
1. Which of the following statements about depreciation is true? A. Depreciation is a non-cash expense, but it is important because it affects a corporation's tax liability B. Depreciation must be calculated the same way for financial reporting and tax purposes C. The choice of depreciation method has no impact on a firm's va
A truck powered by a diesel engine working at a 100% load factor is operated at a mine. If fuel consumption for this truck is 0.3 l/kW and the truck is rated at 1,200 kW what is the level of fuel consumption per hour and the cost of fuel per hour for the following conditions: a) Load factor low = 0.2 b) Load factor medium =
A manufacturer of electronics products is considering entering the telephone equipment business. It estimates that if it were to begin making wireless telephones , its short-run cost functions would be as follows: Quantity (Thousands) Average Variable Cost (AVC) Average Total Cost (ATC) Marginal Cost (
You own a small firm that manufactures and sells a standardized product in a marketplace that closely resembles perfect competition. You have estimated your total cost function at C(Q) = Q + 3Q^2, and your marginal cost function as MC = 1 + 6Q. In trying to plan for the upcoming year, you estimate there is a 75 percent chance
You have an exclusive contract with Major League Baseball to manufacture Dodgers baseball jerseys and sell them in two markets: Los Angeles and Brooklyn. You produce all the jerseys in a single factory located in Seattle. Your total cost function associated with producing the baseball jerseys is c(Q)=Q2+400 where q is the total
15-12A. (Break-even point) You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following cost structure information for this company. All of it pertains to an output level of 10 million units. Using this information, find the break-e
Best Buy (B) and Circuit City (C) are competitors in the consumer electronics market. Both have relatively large margins on plasma TV's. Essentially, they have driven up the price of such TV's well above marginal costs because consumers of these TVs tend to be wealthy, and thus tend to have less time, and thus tend to be less p
During the Great Depression, the federal government swung into action to help farmers. In 1933, it established a system of price support for many agricultural products. Today, there are price supports for wheat, feed grains, cotton, rice, peanuts, soybeans, sorghum and other agricultural products. The nature of the support wa