Purchase Solution

Costs of regulation- managerial economics

Not what you're looking for?

Ask Custom Question

Market demand and marginal revenue relations for Glove-Box units are:P=$500,000-$250Q;MR=$500,000-$500Q;OSHA mandates that GB must install new eqpmt that will increase the $200,000 marginal cost of mfg to $250,000 per unit.The fixed expenses of $50million per yr will be unaffected.
a.calculate GB's profit maximizing price/output combination and economicprofit before the installation of the OSHA mandated equipmt.
b.calculate the same after the osha guidelines have been met.
c.who pays the economic burden of meeting OSHA guidelines.
(when I tried working this, for b. I had TR of 187,500,000; then subtracting costs: -50,000,000 + 250,000(500)=profit of 12,000,000. For part a. the profit was $40,000,000, with a difference of 28million, but I'm not sure how the economic burden thing works so if you could please help me with this and go over all the steps I would really appreciate it. thank you.

Purchase this Solution
Solution Summary

The costs of regulations for managerial economics are given. The economic burden of meeting OSHA guidelines are provided.

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Simple questions on basic economics

    in the production of goods rather than services. Question 2 Managerial economics cannot be used to identify: how macroeconomic forces affect the organization. goals of the organization.

  • Questions in Managerial Economics

    44520 Managerial Economics: Price/Output Determination, Firm Supply, Markup on Cost, point price elasticity of demand, Incremental Analysis, Costs of Regulation, optimal price, output, and profit levels, Common Electric Products, Rainbo Luncheon Deli

  • Cost Benefit vs Well Being Analysis: Managerial Economics

    Managerial Economics. Retrieved from http://books.google.com/books?id=MYyHp8q7nD4C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Samuelson, W. (2012). Managerial Economics. (7th ed). John Wiley & Sons, Inc.

  • Managerial Economics

    With the assistance of this, we will become able in understanding the application of the principles of economics in business decision making.// Managerial Economics Managerial Economics is a branch of economics.

  • Policy Calculations Insurers Operate

    Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305 - 360. Linnerooth-Bayer, J., Mace, M.J. & Verheyen, R. (2003).

  • Government Regulations add costs to American companies

    Because of the possible adverse effects on the economy as a whole when eliminated, what are proposed by this reporter are regulatory reforms, not total elimination. REFERENCES: Hrschey, Mark (2003). Managerial Economics.

  • Comparing different market structures

    References: Managerial Economics: Economic Tools for Today's Decision Makers, 5th Edition, by Paul G Keat and others, published by Pearson Education Inc.

  • Micro and Macroeconomics Inquiry

    Managerial economics applies microeconomic analysis to specific business decisions. Managerial economics is applied microeconomics - normative microeconomics.

  • Government Regulation

    The costs include the costs to regulated companies in complying with the regulation, as well as the direct costs to the regulatory agency of enforcement.

View More Related Solutions