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Price Levels

Managerial Economics

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

Finding optimal price and output level

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:

Natural Monopolist: Profit Maximizing Price and Output

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

Production functions

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---------------$290 ----3--------------$

Managerial Economics: Calculating optimal price and number of lockers rented.

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

Computation of Profit-Maximizing Price Level and Output

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

Efficient level of production

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

per capita GDP computed

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

Which of the following statements about depreciation is true?

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

Cost of Fuel

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 =

Market Structure: Perfect Competition

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 (

Break-even-points and leverage

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

Dominant Strategies and Nash equilibria?

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


PLEASE GIVE FULL EXPLANATION 1- distinguish between short-run and long-run aggregate supply. what is the short run? what assumption is critical to the development of the short run aggregate supply curve as distinct from the long run aggregate supply curve? Explain

I need help figuring out the steps to solve these problems.

1a. Given the (Q) and price (P) data in the following table, calculate the related total revenue (TR), marginal revenue (MR), and average revenue (AR) figures: Q P TR MR AR 0 $10 1 9 2 8 3 7 4 6 5 5 6 4 7 3 8 2 9 1 10 0 b. Graph this data using "dollars" on the verti

Calculate Profit-Maximizing Activity Level

Allied Box offers mail-order storage containers for fine china producers. The company is the low-cost provider of these boxes with fixed cost of $480,000 per year, plus variable cost of $30.00 for each box. Annual demand and marginal revenue functions for the company are: P = $70 - $0.0005Q MR = dTR/dQ = $70 - $0.001Q A.- C

Profit-Maximizing Level of Price and Output

Philips Industries manufactures a certain product that can be sold directly to retail outlets or to the Superior Company for further processing and eventual sale as a completely different product. The demand function for each of these markets is Retail Outlets: P1 = 60 -2Q1 Superior Company: P2 = 40 -Q2 where P1

Demand Schedule

Exotic Metals, Inc., a leading manufacturer of beryllium, which is used in many electronic products, estimates the following demand schedule for its product: Price ($/Pound) Quantity (Pounds/Period) $25 0 18 1,000 16 2,000 14 3,000 12 4,000 10 5,000 8 6,000 6 7,000 4 8,000 2 9,000 Fixed costs of manufacturin

Persuasive Writing: Introduction

Read this article about writing Letters to the Editor: You can also google "how to write a letter to the editor" if you like. Look in a newspaper (online or live). Find an article that raises a point on which you feel strongly. Please do not choose topics related to

economic impacts of a tariff on a nation's welfare

This is a small country case. Using graphs, explain the economic impacts of a tariff on a nation's welfare, and show how a tariff would affect the current equilibrium price and quantity and import levels within a market that happens to be importing the good already but still has a certain amount of domestic production occurring.

Consumer Price Index

Use the hypothetical date in Table III to respond to the questions that follow. Table III: Relative Importance in the Basket of Goods and Services, 1995-2000. CATEGORY QO Po P1 PoQo P1Qo Food 16 50

Maximum Profit

Campbell's sells used trailers, U, and new trailers, N. Its profits are given by Õ = 100N + 68U - 5N2 - 5U2 - 2NU. Campbell's maximum profit is a. $455. b. $588. c. $620. d. $495. e. $640. Total profit is maximized when a. marginal profit equals average profit. b. marginal profit equals zero. c. average profit eq

Question about output level

James Pizzo is president of a firm that is the price leader in the industry; that is, it sets the price and the other firms sell all they want at that price. In other words, the other firms act as perfect competitors. The demand curve for the industry's product is P = 300 - Q, where P is the price of the product and Q is the tot

Nominal Versus Real GDP

Table: Nominal Versus Real GDP Year Coffee (Cups) Milk (Gallons) GDP (nominal, real) 2002 (base year expenditure) Price $1.00 Quantity 10 Price $2.00 Quantity 20 2003 (Case 1 expenditure) Price $1.50 Quantity 10 Price $4.00 Quantity 20 2003 (Case 2 expenditure) Price $1.00 Quantity 15 Price $2.00 Quantity 40

ABC Costing

NOTE: It is expected that this problem will be completed using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The new president of the Wernecke Company was stumped. Why had profits gone down? He had directed the sales department to push the product with the hi

Estimated share price

Leverage and Capital Structure - chapter 12 Calculation of Share Value Estimates Associated with Alternative capital Structures Capital Structure Expected Estimated Estimated Debt Ratio EPS Required Return Share Value 0% $1.75 11.40% 10 1.90 11.80% 20 2.25 12.50% 30 2.55 13.25% 40 3.18 18.00%