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Negative and Positive Externalities

What is the distinction between a negative and a positive externality, providing examples of each. The paper is also to address how such externalities can be promotes or discouraged. The proper role of the private sector and the government is also to be addressed. (APA Format). What is the definition of an externality? Wha

Cost of Capital and Manufacturing Accounting

The cost of capital is important to capital decision making and any manipulation on cost of capital will affect to the situation of any company. Discuss the importance of cost of capital with respect to the actual financial problem of most manufacturing companies.

Determine the expression for Optimum Order Quantity

1)The total relevant cost (TRC) of holding inventory in a production facility is given by: TRC = (A/Q)(B) + C(Q/2)+D Where: Q = order quantity, A, B, C, D = constants a)(10 pts) Determine the expression for the optimum order quantity (Q*) based upon the minimum TRC, b)(5 pts) Prove that the expression in part 'a" is

Production Function

The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past date, the following production schedule was developed: Crew Size Amount of Fish Caught (Number of Workers)

Shirt Pricing

Quality Uniform Total Marginal Variable Sold Price Revenue Revenue Cost 0 $50.00 $0 $0 $28 1 $48.00 $48 $48 $28 2 $46.00 $92 $44 $28 3 $45.00 $135 $43 $28 4 $44.00 $176 $41 $28 5 $42.00 $210 $34 $28 6 $40.00 $240 $30 $28 7 $38.31 $268 $28 $28 8 $36.50 $292 $24 $28 9 $

Incentive for Farmers to Introduce New Technology

"Because agricultural demand is inelastic, a technological advance that lowers production costs will reduce total revenue. Thus, farmers have no incentive to introduce such a technique." True or false or uncertain. Briefly explain.

Linear Programming of an Agricultural Production

I have 7 hectares of land in the Philippines which can be planted to rice (X1) and/or corn (X2). I also have 72 days of labor and 72 tons of fertilizer. One hectare of rice requires 6 days f labor and 12 tons of fertilizer. One hectare of corn requires 12 days of labor and 6 tons of fertilizer. The cost of water is $10 per ton,

Economics problem

A civil engineer has been promoted to manager of engineered public systems. One of the products is an emergency intercept pump for potable water. If the tested water quality or volume varies by a preset percentage, the pump automatically switches to preselected options of treatments or water sources. The manufacturing process fo

Job Order Costing

The Business Situation Greetings Inc. has operated for many years as a nationally recognized retailer of greeting cards and small gift items. It has 1,500 stores throughout the United States located in high-traffic malls. As the stock price of many other companies soared, Greetings' stock price remained flat. As a

Standard Costs and Balanced Scorecard

Putnam Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $7.00 per pound $ 7.00 Direct labor-1.5 hours at $12.00 per hour 18.00 Variable manufacturing overhead 11.25 Fixed manufacturing overhead 3.75 Total standard cost per unit $40

Profit maximizing output level computation

A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q. Find the firms profit maximizing price and quantity. What is profit? The firm's production manager claims that the firms average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units i

Process Costing

Ortega Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows. Cutting Departme

Process costing

Kasten Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at

Optimal Output Decision

Suppose a firm has only three possible plant-size options represented by the ATC curves shown in the accompanying figure. 1. What plant size will the firm choose in producing each of the following outputs? 2. Draw the firm's long-run average-cost curve on the diagram and define this curve. (a) 50; (b) 130; (c) 160,

Activity based costing

Jacobson Electronics manufactures two large-screen television models: the Royale which sells for $1,600, and a new model, the Majestic, which sells for $1,300. The production cost computed per unit under traditional costing for each model in 2008 was as follows. Traditional Costing Royale Majestic Direct materials $ 7

Activity-based costing

Stellar Stairs Co. of Poway designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles, risers, hangers, hand rails) permit installation of stairs of varying lengths and widths. All are of white oak wood. Its budgeted manufacturing overhead costs for the year 2009 are as follows.

Production and Cost

Largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage rate is $20 and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1000 books to total output. Is the publishing house making the optimal input choice? Why...

Health production functions

A)Assume that health production is subject to diminishing returns and that each unit of health care employed entails a constant rate of iatrogenic (medically caused) disease. Would the product of health function eventually bend downward? A Briefly Explaination. b)What evidence is there to suggest that the most of the develop

Capital to Labor Ratio

In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit's city council is considering passing a statute that would give investment tax credits to auto manufacturers. Effectively, this would reduce auto manufacturers' cost of using capital and high-tech equipment in the

Production Possibility Curve for Time

Draw a production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today. Also indicate a combination that is unavailable for anyone. Make sure you use excel for the graph.

Capital stock per effective worker-output

Suppose an economy's production function is Y = K1/2 x [AN]1/2 and that the savings rate, s, is equal to 20%, the depreciation rate, δ, is equal to 8%, the number of workers grows at 1.5% and the rate of technological progress is 5% per year, then find the steady-state values of 1) capital stock per effective worker, 2) out

Production and Cost

You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70,000 workers to produce 300,000 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 $500,000 per day.

Shifts in the PPF

I help in answering this question. Please provide diagrams along with explanations. Shifts in the PPF. Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think that the September 11, 2001 terrorist attacks on the World Trade Center and the Pentagon affected short or long t

production possibility frontier .

Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources

Microeconomics 5 Questions

1. Country A is a country that produces a variety of goods and services. Considering the policies/events listed below, how might country's A production possibilities frontier change (ie shift out or in)? a. The government deregulates industries. b. The government increases military spending.

cost externality

Which of the following is not an example of a cost externality? a) the dumping of industrial waste into a lake b) unsightly billboards c) a neighbor that blasts his stereo system d) the building of a new type of jet fighter bomber e) all of the above

Production Possibility: War and Civilian Goods

Use the following production possibility tables (see attachment) for war goods and civilian goods. If the economy is at the point C, what is the cost of one more automobile? What is the cost of one more missile?