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    Pricing & Output Decisions

    A discussion of competitive firms

    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."

    Charles Lackey's Bakery Productivity

    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

    Since World War II, the US national debt as a percentage of GDP

    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

    three primary actors in the economy

    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 long run is a planning period

    The long run is a planning period a. all inputs are fixed b. inputs are neither variable nor fixed c. at least one input is variable and one input is fixed d. all inputs are variable. This is so confusing to me but I feel strongly that this is B The change in total output resulting from a 1- unit increase in the qua

    Assume a firm employs 10 workers and pays each $15 per hour.

    Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $4. According to economic theory, in the short run, a. the firm should hire additional workers. b. the firm should reduce the number of workers employed

    Production

    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. Number of Worker Hours Output Marginal Product Fixed Cost VariableCost TotalCost MarginalCost AverageVariableCost Average Total Cost 0

    Marginal Productivity Theory

    What if a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $4. According to economic theory, in the short run, a. the firm should hire additional workers. b. the firm should reduce the number of workers

    Short-run Profit Maximization

    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

    Minimum Wage Legislation

    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

    Single/Multi-Factor Productivity

    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,

    concepts of economies and diseconomies of scale

    Use the concepts of economies and diseconomies of scale to explain the shape the firms long- run ATC curve. What is the concept of minimum efficient scale? What bearing can the shape of the long run ATC curve have on the structure of an industry? (show curves/graphs in the solution) MBA level

    Profit Determination Project

    Woodland Instruments, Inc. operates in the highly competitive electronics industry. Prices for its R2-D2 control switches are stable at $100 each. This means that P = MR = $100 in this market. Engineering estimates indicate that relevant marginal cost relations for the R2-D2 model are: MC= $25 + $0.005Q. Calculate the output

    Revenue Determination Project

    Given the price (P) and output (Q) data in the following table, calculate the related total revenue (TR), marginal revenue (MR), and average revenue (AR) figures, and determine output level that maximizes revenue. Q P TR MR AR 0 $35 1 30

    Shut Down Analysis

    4) You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don't

    profit-maximizing output for the firm

    Market price is $50. The firm's marginal cost curve is given by: MC = 10 + 2Q a. Find the profit-maximizing ouptut for the firm. Draw the pertinent diagram. b. At this output, is the firm making a profit? Explain your answer and shade the profit/loss on the diagram.

    Optimal output level by marginal cost minimization

    A firm has determined that its variable costs are given by the following relationship: VC = .05Q3 - 5Q2 + 500Q where Q is the quantity of output produced. Determine the output level where marginal costs are minimized. 333.3 33.3 3.33

    The Zinger Company: Total Profit at Optimal Level

    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

    Profit Maximization - The Zinger Company

    The Zinger Company sells and produces sewing machines. For a certain model, demand per period (Q) is given by: Q = 400 - .5P (P is price) Producing Q units per period yields a total cost of: TC = 20,000 + 50Q + 3Q2. At what level of output are total profits maximized? a. 750 units b. 75 units c.

    The marginal revenue product of labour

    Please see attached file. The following information pertains to a perfectly competitive firm that sells its output for $2 in the short run and is one of many demanders of labor. (i) Fill in the blanks in the above table. (ii) How many workers would the firm hire if the wage rate was $10? (iii) Explain why this firm wou

    Labor and cost function

    If you can help me solve this that would be helpful...... Q= 2(K) 1/2 (L) 1/2 K= capital equipment L= labor the company spent already $10,000.00 on 4 units of capital equipment in they own. due to economic condtions does not have the flexibilty needed to acquire addtional equipment......IF the workers at this firm ar