The Quik Service Walk In Clinic always has three M.D.'s and eight R.N.s working at its 24 hour clinic, which serves customers with minor emergencies and ailments. The clinic has hired an efficiency expert to examine its operations and make suggestions for reducing costs. For some of the medical procedures done at the clinic,
QopyQat specializes in printing business cards and resumes, using the latest laser technology. After analysis of the business, the manager has decided that weekly demand can be approximated by Q = 25,000 - 100P The firm's cost function is C = 25,000 + 13Q + 0.002Q^2 (Q square) where Q is output per week. a) Dete
Suppose the market price of sugar is 22 cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound. Is the farmer maximizing profit? If not, should the farmer produce more or less sugar?
You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. You want to examine price and output strategy. A typical consumer's inverse demand for your bran muffins is now P = 3 - 0.5Q and your cost of producing bran muffins is C(Q) = Q. Determine th
Two local ready-mix cement manufacturers, Here and There, have combined demand given by Q = 105 - P. Their total costs are given by TCHere = 5QHere + 0.5Q2Here and TCThere = 5QThere + 0.5Q2Here. If they successfully collude: Their total output will be? Their maximum joint profits will be ? If they cannot successfully
Economists at General Industries have been examining operating costs at one of its parts manufacturing plants in an effort to determine whether the plant is being operated efficiently. From weekly cost records, the economists developed the following cost-output information concerning the operation of the plant: a. AVC (averag
Output is produced according to Q = 4L + 6K, where L is the quantity of labor input and K is the quantity of capital input. If the price of K is $12 and the price of L is $6, then the cost minimizing combination of K and L capable of producing 60 units of output is:
A firm's cost curves are given in the following table. q TC TFC 0 100 100 1 130 100 2 150 100 3 160 100 4 172 100 5 185 100 6 210 100 7 240 100 8 280 100 9 330 100 10 390 100 a. Use
Use the following information to answer the questions below: Q1 = 500 - 10P Q2 = 700 - 40P Q = 1,200 - 50P where Q1 is the quantity demanded for group 1, Q2 is the quantity demanded for group 2, and Q is the sum of the two demands for the two types of consumers. The marginal cost of serving either group is $10. a. Com
1.Your supervisor recently instituted a plan that encourages her managers to share non-private demographic characteristics voluntarily provided by those who purchase your firm's final product. Since the plan was implemented, the same amount of voluntary information is being collected by each manager, however, the supervisor is s
1. After a 10% price discount, a firm found that its weekly sales increased by 30%. If the marginal cost (MC) of this product is $40 each, what is the optimal price for this product? 2. Suppose the total cost equation for a competitive firm is given by: TC=1,000+ 10Q -2Q^2 + 0.5Q^3 (A) At what output is the average vari
I need some guidance for the following economics questions: A. What is the law of diminishing marginal productivity? Give an example from your workplace/household of the law of diminishing marginal productivity?. a) Why is the demand of labor a derived demand? b) What is the relationship between productivity an
Wyandotte Chemical Company sells various chemicals to the automobile industry. Wyandotte currently sells 30,000 gallons of polyol per year at an average price of $15 per gallon. Fixed costs of manufacturing polyol are $90,000 per year and total variable costs equal $180,000. The operations research department has estimated that
Kathy's Bakery is a local full-service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. She is considering an attempt to differentiate her shop from several other competitors by only producing a special rice bread for customers allergic to wheat. Doing so w
The Taylor Mountain Uranium Company currently has annual cash revenues of $1,200,000 and annual cash expenses of $700,000. Depreciation amounts to $200,000 per year. These figures are expected to remain constant for the foreseeable future (at least 15 years). The firm's marginal tax rate is 40%. A new high-speed processing unit
Important Problem related to TCO C, How about if we try an EXAMPLE of MR=MC for a perfectly competitive firm? (TCO C ) Answer the next question on the basis of the following information for a purely competitive firm: Output------------Price------------Total Cost ----0--------------$100---------------$100 ----1------
Indicate whether each of the following statements is true or false and give the reason. (a) A firm should stop expanding output after reaching diminishing returns and (b) if large and small firms operate in the same industry, we must have constant returns to scale.
1.) Gordon's Pizzeria, a firm that is small relative to both the labor market and the pizza market, can hire workers at an hourly wage of $12. The 50th hour of labor added 4 pizzas to the firm's output, and each pizza can be sold for $10. a) How much does the 50th labor-hour add to the firm's profit? _________________________
Question 1 Refer to the graph depicting a perfectly competitive market firm in a constant cost industry. IF market demand increase from DO to D1, in the long run: Question 2 Often, gas stations only a few miles apart differ in price by as much as 10 cents per gallon. The most likely explanation for this kind of price d
Problems 1- Given the following total-revenue function: TR=9Q-Q² (a) Derive the total-, average-, and marginal-revenue schedules from Q = 0 to Q = 6 by 1' s. (b) On the same set of axes, plot the total-,average-,and marginal-revenue schedules of part (a) 2- Given the follow total-cost schedule: Q 0 1 2 3 4 TC
Which of the following is an example of the prisoners' dilemma? 1. Firms in an industry increase their advertising expenditures, causing profits to rise. 2. A country provides subsidies to high technology firms which are consequently able to increase market share. 3. Members of a commodity cartel produce excess output,
Question: A monopolist faces a marginal revenue function of MR = 20 - Q. The monopolist's marginal cost is $15 at all levels of output. How many units of output should the firm produce in order to maximize profits?
1. Review of financial statements) Prepare a balance sheet and income statement as of December 31, 2003, for the Sharpe Mfg. Co. from the following information. Accounts receivable $120,000 Machinery and equipment 700,000 Accumulated depreciation 236,000 Notes payable 100,000 Net sales 800,000 Inventory 110,000 Accounts
Your marketing VP says that he believes that you could make more money by first releasing a 'limited edition' version aimed at hard-core video game players and then a few months later releasing a regular edition aimed at the general public. He estimates the following inverse demand curves for each segment Hard-core game
Given the following table: Complete the following table (round each answer to the nearest whole number): Total Variable Fixed Marginal Average Avg. Var. Avg. Fixed Output Cost Cost Cost Cost Cost Cost Cost 0 1 5 2 30 3 13 4 105 10 5 110 6 50 Complete the table then
The table below presents estimates of the maximum levels of output possible with various combination of two inputs. Capital (K) 5 11 25 37 47 51 4 10 23 33 41 44 3 8 18 25 30 34
The cost schedule of producing coffee in Hilo is shown below. Output in tones Cost in $ VC ATC AVC MC 0 200 1 437.8 237.8 437.8 237.8 237.8 2 596.4 396.4 298.2
Sparkling Pipes, Inc. offers professional furnace duct cleaning to home owners in Danville, Illinois. The company estimates that each additional room of ducts it cleans costs the firm $10. The owner's daughter did a study and estimated the firm's demand could be described by the following equation, where P stands for price, an
"The best expansion path for a firm contemplating growth is along the points of tangency between the firm's isoquant and isocost lines."
Please help with the following problem. 1) Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below: (see attached file for table) 2) How would each of the following affect the firm's marginal, average, and average variable cost