Column 1, 2, 3, is derived from a firm's long run expansion path. The price of capital is $50 and the price of labor is $30 Out put Capital Labor Total cost long run Long run average cost Long run marginal cost 20 8 12 40 15 20 60 25 35 80 40 50 Using the above table, answer the following questions a.
The Dijon Company's total variable cost function is: TVC = 50Q -10Q^2 + Q^3 where Q is the number of units of output produced. a. What is the output level where marginal cost is at minimum? b. What is output level where average variable cost is a minimum? c. What is the value of average va
Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information and using Excel, fill in the missing information in the table below. Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost AVC ATC 0
The following questions refer to a firm, whose manager recently estimated its average variable cost (AVC) function to be AVC = 88 - 0.026Q + 0.000003Q2 The firm faces total fixed costs (TFC) of $300,000. a. What is the marginal cost of the firm equal to (in dollar terms) when output is 6,000 units? b. Wha
A monopolist produces a single homogeneous good, which he sells in two markets between which discrimination is possible. His total cost function is: TC = Q3 /3 - 40Q2 + 1800Q + 5000 where annual total cost is in dollars and annual output in tons. The demand curves in the two markets are given by the equations q1 = 320 -
A monopolist produces a single homogeneous good, which she sells in two distinct markets between which price discrimination is possible. Her total cost function is: TC = 1/3 Q3 - 7.5Q2 + 370Q + 100 The demand curves in the two markets are given by: q1 = 80 - 0.2p1 and q2= Ap2-5 The monopolist achieves a pro
GETTING IT RIGHT: THE SUCCESS OF CONTINENTAL AIRLINES Continental Airlines was doing something that seemed like a horrible mistake. All other airlines at the time were following a simple rule: They would only offer a flight if, on average, 65 percent of the seats could be filled with paying passengers, since only then could t
You are given the following long run cost function: TC=160Q-20Q2+1.2Q3 Go from Q=0 to Q=12 A. Calculate the long run average cost and marginal cost. Plot these costs on a graph. I need this set up in excel. B. Describe the nature of this functions scale of economies. Over what range of output does economies of scale exist? D
The Rainbow Paint Co. uses a process-costing system. Materials are added at the beginning of the process and conversion costs are incurred uniformly. Work in process at the beginning of the month is 40 % complete; at the end, 20%. One gallon of material makes one gallon of product. Data follows: Beginning inventory
3. Economists estimated the following cost function for X Corporation C = 50 + 16 Q - 2 Q² + 0.2 Q³ C = Total Cost Q = Quantity produced per period a. Plot the TFC, TFC and TC for the values of Q = 0, 1, 2, 3,.......... 10 b. Calculate the ATC, AVC and MTC and plot on another graph. c. Explain the relationships betw
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal cost associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be charged in order to maximize revenues? A. $39 B. $47 C. $52 D. $56
True or False: "In the long run, no matter what the price, a competitive firm should provide the output that minimizes long-run average cost (a.k.a the efficient scale), since that output maximizes profit per unit of output."
Question 1 : True or False: "In the long run, no matter what the price, a competitive firm should provide the output that minimizes long-run average cost (a.k.a the efficient scale), since that output maximizes profit per unit of output."
After reading the background section to the problem below, answer the question of "which is the better decision as well as (a) and (b). Make sure to show ALL the work/steps to how the answers were derived. -------------------------------------------------------------------------- Background: Charles Lackey operates a ba
Could someone please help with the following multiple choice questions. Your help is GREATLY appreciated! 6. Since World War II, the US national debt as a percentage of GDP a. rose especially in the last ten years. b. rose, mainly as a result of wars. c. remained constant on average over the whole period. d. fell, rose
Over the last 30 years the Organization of Petroleum Exporting Countries (OPEC) has had varied success in forming and maintaining its cartel agreements.
Over the last 30 years the Organization of Petroleum Exporting Countries (OPEC) has had varied success in forming and maintaining its cartel agreements. Explain how the following factors may contribute to the difficulty of forming and/or maintaining its price and output agreements. a. New oil fields are discovered and increased
Kate's Katering provides catered meals, and the catered meals industry is perfectly competitive. Kate's machinery costs $100 per day and is the only fixed input. Her variable cost is comprised of the wages paid to the cooks and the food ingredients. The variable cost associated with each level of output is given in the accompa
The purpose of economics is to allocate scarce resources in a manner that maximizes society's happiness and to their highest valued use.
The purpose of economics is to allocate scarce resources in a manner that maximizes society's happiness and to their highest valued use. Do you agree? 1) How do we measure society's happiness ? 2) How is the highest valued use determined ? What are the issues and difficulties you see around trying to achieve these goals ?
The accompanying table shows a car manufacturer's total cost of producing cars. Quantity of cars TC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 5
How can the extent to which the presence of economies and diseconomies of scale in an industry help account for the size and the number of firms in that industry?
How can the extent to which the presence of economies and diseconomies of scale in an industry help account for the size and the number of firms in that industry? That is, if economies of scale are quite extensive in a particular industry, would you expect a large number of relatively small firms or a small number of relatively
General Cereals, Inc. (GCI) produces and markets Sweeties!, a popular ready to eat breakfast cereal. In an effort to expand sales in the Secaucus, New Jersey, market, the company is considering a 1 month promotion whereby GCI would distribute a coupon for a free daily pass to a local amusement park in exchange for three box to
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $150. Output FC VC TC TR Profit/Loss 0 $100 $ 0 $100 $ 0 -$100.00 1 $100 100 $200 $150 -$ 50.00 2 $100 180 $280 $3
Is minimum wage legislation bad for on-the-job training? It has been argued that the minimum wage prevents workers from investing in on-the-job training and discourages employers from providing specific training to low-income workers. Why would the minimum wage have an adverse effect on human capital accumulation for low-inco
An Appliance Service company made house calls and repaired 10 lawn-movers, 2 refrigerators, and 3 washers in an 8-hour day with his standard crew of 3 workers. The average wage for the workers is $12 per hour. The materials cost for a day was $200 while the overhead cost was $50. (a) What is the company's labor productivity,
The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship: Q = 400 - .5P where P is price. Total costs (including a "normal" return to the owners) of producing Q units per period are: TC = 20,000 + 50Q + 3Q2. What are total prof
Please see attached file.
Having trouble understading the equations and concept. See attachment for full problem description with proper symbols. --- Micro 1. . Monopoly producer has a total cost function C = 66 + 2Q + Q2 (Hint: MC = 2 + 2Q). Demand for its product is Q = 10 - 0.2P (Hint: MR = 10 - 0.4P). a. Compute and graph Average Reven
We make choices as consumers every day.Opportunity cost is defined as a person's ''next best alternative'' or the best of what you give up when you make a choice. Think of a recent decision you made regarding your career. What was your opportunity cost for making that choice? What was your best alternative?
Here is a problem that I am trying to figure out: Wkly. output Apple Airlines(A) Big Bird(B) Chancy Airlines, ltd.(C) 1 $40 $20 $50 2 30 25 40 3 25
Background: Merriwell Corporation has a virtual monopoly in the ultra high-speed computer market. Merriwell has recently introduced a new computer that will be used by satellite installations around the world. The installations have identical demands for the computers. Merriwell's managers have decided to lease rather than s
The Green Show Company is considering going to a piece rate system, where manufacturing employees are paid based on their level of output. Discuss what factors the firm should consider in deciding whether this idea should be implemented. How should the initial piece rate be set? Under what circumstances should the company alt