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# Price Levels

### Economics - Market Structures

(1) Global Investment Group operates in a perfectly competitive industry with the following Cost and Revenue data: Average Total Cost = \$2.50; Quantity sold = 9000 Units; Price Per Unit = \$3.50; Marginal Revenue = \$3.50; Marginal Cost = \$3.50: (a) What is the loss minimizing output level for the firm? (b) What is the A

### Determining Optimal Output Level

Please refer attached file for graph. Assuming that the firm in the attachment is a profit maximizer operating in the short run, determine its optimal price Determine the firm's profit per unit in the attachment. What is the ATC in dollars? If the attached monopolist were to behave like a perfectly competitive firm o

### Monopoly

Please refer attached file for diagram. The follwing diagram shows the cost structure of a mononpoly firm as well as market demand. Identify on the graph and calculate the following: a. Profit-maximizing output level b. Profit-maximizing price c. Total Revenue d. Total Cost e. Total profit or loss. State the correct

### Total revenue, breakeven price, production and probabilities

1. Which of the following is the correct model for total revenue, TR? A) p(2500 - 12p) = TR B) 2500p -12p = TR C) d(2500 -12p) = TR D) 2500 - (12p)d = TR 2. Westside Bakery is considering opening a new branch in Abingdon, IL. Westside will initially sell only loaves of wheat bread. The fixed costs including building, oven

### Dividends & NPV of Stock

1(a). Martin's Yachts has paid annual dividends of \$1.40, \$1.75, and \$2.00 a share over the past three years, respectively. The company now predicts that it will maintain a constant dividend since its business has leveled off and sales are expected to remain relatively constant. Given the lack of future growth, you will only bu

### Calculating profit maximizing output level and price

Suppose a company has just introduced a new line of ceramic insulators for which it has received patent protection, effectively granting the company monopoly status in the industry. The company's revenue and cost relations are given as: TR = \$300Q - \$0.001Q2 TC = \$9,000,000 + \$20Q + \$0.0004Q2 where TR is total revenue,

### Costs Analysis

Suppose that the total cost function for a single firm in a purely competitive industry is given by the following equation: TC = \$5,625 + \$5Q + \$0.01Q2 Because this industry is purely competitive in nature, each firm behaves as a price taker and market price is given at \$20 per unit (so that P = MR = \$20). Finally, assume

### Calculating Profit Maximizing Output and Price Level

For a monopoly, total and marginal revenue relations are as follows: TR = \$250Q-\$0.001Q2 MR = MTR/MQ = \$250-\$0.002Q MC = \$150 A. As a monopoly, calculate output, price and profits at the profit maximizing level. B. What price and profit levels would prevail following expiration patent protection (assume perfectly

### Marginal cost of production

Carlton Industries, a manufacturer of electronic equipment, estimates the following relation between its marginal cost of production output: MC = \$150 + 0.005Q a) What does this MC function imply about the effect of the law of diminishing returns on Carlton's short-run cost function? b) Derive the marginal cost of prod

### Operating Leverage and Fluctuations in operating earnings

Jason Kidwell is able to purchase Toys'n Things, Inc. for \$2.2 million. Jason estimates that after initiating his changes in the company's operations the firm's cost of goods sold are 55% of firm revenues and operating expenses are equal to a fixed compnonent of \$350,000 plus a variable cost component equal to 10% of revenues.

### Production Costs

Problem: a.Given the following chart and information fill in the missing values. Output TFC TVC TC MC AFC AVC ATC 0 \$2,000 -- 50

### Determine Profit Maximizing Output Level

The weekly demand for computers produced by College Computers is given by Q= 1,000 - P and the weekly cost of producing computers is (C)Q= 2,000 + Q^2. If other firms in the industry sell PCS at \$600 what price and quantity of computers should you produce to maximize your firm's profits? What long run adjustments

### Determining Price, Level of Production and Profits

You are a manager of a monopolistically competitive firm, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2 a) find the inverse demand function for your firms product b) determine the profit maximizing price and level of production c) calculate your firms profits d) what long run adjustment

### Perfect Competition

A firm sells its product in a perfectly competitive market where other firms charge a price of \$80 per unit. The firms total cost are C(Q) = 40 + 8Q + 2Q^2 a) how much output should the firm produce in the short run? b) What price should the firm charge in the short run? c) What are the firm's short run profits? d) What

### Profit Maximizing level of output summary

Assume that a perfectly competitive firm is currenly producing 5,000 units of output and is earning \$10,000 in total revenue. The marginal cost of the 5,000th unit of output is \$3. Is this firm producing the profit maximizing level of output? How do you know?

### Profit Maximizing Output for a Competitive Firm

Consider a firm in a perfectly competitive market. The firm has just built a plant that costs \$15,000. Each unit of output requires \$5 worth of materials. Each worker costs \$3 per hour. a. Based on the information above, fill in the following table. (Refer to the attachment for proper formatting of this chart) Number

### Macro Finding Nominal Wage Rate

Here are values of CPI (multiply by 100) for each year from 1990 to 2000. A report found that the real entry level wage rate for college graduates declined by 8% between 1990 and 1997. The nominal entry level wage in 1997 was \$13.65 per hour. 1990 130.7 1991 136.2 1992 140.3 1993 144.5 1994 148.2 1995 152

### Profit maximization analysis

Profit Maximization Profit Maximization 1) Fill in the missing data for price (P), total revenue (TR), Marginal Revenue (MR), total cost (TC), Marginal Costs (MC), profit (ð), and marginal profit (Mð) in the following table (all units except Q are dollar

### marginal revenue costs

The economics student knows that the profit maximizing manager will produce the quantity where marginal revenue equals marginal cost (a J-shaped curve which reflects a different marginal cost at every quantity). The manager knows that organizations estimate marginal costs that are constant over a range of quantity levels. How ca

### The analysis of cost for Haverford Company

The Hartford Company is considering three types of plants to make a particular electronic device. Plant A is much more highly automated than plant B, which in turn is more highly automated than plant C. For each type of plant, average variable cost is constant so long as output is less than capacity, which is the maximum output

### Supply and Demand

Explain the laws of Supply and Demand; distinguish between shifts in each, from a movement along its curve, then explain how the laws of supply and demand generate equilibrium. What are the limitations of supply and demand analysis?

### Question4

4)The recently submerged kingdom of Atlantis is populated by identical rational air breathing individuals. The king has decided to give an award to the industry whose product yields the kingdom the most economic value. Hundreds of industries have entered the competition for the award. The finalists in the competition are the c

### price output decisions for perfect competition and monopoly

Please see the attachment. Sun City, Arizona, a retirement community that features full-service living arrangements, is considering two proposals to provide lawn care to elderly residents. First, a national lawn care firm has offered to purchase the city's lawn care equipment at an attractive price in return for an exclusive fr

### Cost and Profit Tables

In the attached table, I need the missing data for price, total revenue, marginal revenue, total cost, marginal cost, profit and marginal profit TR = MR MC Profit MPi Q P P*Q &#9650; TR/&#9650;Q TC &#9650; TR/&#9650;Q &#9650;&#960

### A. Find the values of TR, MR, VC, TC, MC, AFC, AVC, P/L b. Is this firm a profit max., loss min., or a close-down case. c. Show your answers graphically using the TR/TC or MR/MC approach. See more in long description

A perfectly competitive firm is operating in a market where price is given as \$20 and the cost of production is as shown on the table below: Q P TR MR FC VC TC MC AFC AVC P/L 0 20 10 10 1 20 10 18 2 20 10 25 3 20

### 2 Microeconomics Questions

1. Suppose that a given set of resources can be used to make either handbags or wallets. The MC of a handbag is \$19 and the MC of a wallet is \$10. If the MU of a wallet is \$10 and the MU of a handbag is \$30, what can be done to improve resource allocation? What can you say about the gain to customers? 2. Using marginal analy

### Price Level and GDP

Macroeconomics Question Scenario You are given the following information about the economy of Nocoin: the banks have deposits of \$300 billion. Their reserves are \$15 billion, two thirds of which is in deposits with the central bank. Households' and firms hold \$30 billion in banknotes. There are no coins Question: The

### Profit-maximizing output

Refer to the data in the attachment What is the profit-maximizing output for this firm a) 100 units b) above 290 units c) 290 units d) 200 units e) 210 units

### Suppose that you want to reduce the emissions from two firms.

1. Suppose that you want to reduce the emissions from two firms. Their marginal abatement cost schedules are in the following table. An entry in the table indicates the cost of reducing emissions by one unit from the previous level. For example, \$60 is the additional abatement cost for Firm 1 to reduce its emissions from 3 to

### Effects on Price and Output

2. You have been hired by a private consortium of South African orange growers to predict the impact on the price and output of oranges under the following conditions. a. A major freeze destroys a large number of orange trees in South Africa b. Scientists at the University of Pretoria discover a way to increase substantially t