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Economic Concepts Questions

13. Suppose a worker is offered a wage of $10 per hour, plus a fixed payment of $120 per day, and he can use 24 hours per day. What is the market rate of substitution between leisure and income? a) $5. b) $8. c) $10. d) none of the above. 14. A perfectly competitive firm faces: a) a perfectly elastic demand functio

Managerial Economics

14. An industry can be characterized by the following production function: Q = 2.5L0.60 C0.40 (a) What is the algebraic expression for the marginal productivity of labor? (b) What is the algebraic expression for the average productivity of labor? (c) How would you characterize the returns-to-scale in

Calculations for Cost of Goods Manufactured, cost of goods sold

Acme Co. makes widgets, during 2005 the company sales were 600,000. Costs in 2004: Raw materials 70,000 Direct labor 180,000 Indirect labor 15,000 Equipment rent 25,000 Factory utilities 10,000 Misc factory supplies 17,000 building depreciation 15,000 property taxes 5,000 production salaries 75,000 administrative s

Home computer increase

The steady increase in the demand for home computers has resulted in a massive increase in the demand for web access, yet, the price of access has been steadily declining. Using the model of supply and demand, can you provide a possible explanation for the decrease in the price of access?


CH 17-4 A firm used to have productive assets that generated an income stream with a present value of 3,000. However, fire occurred and most of those assets were destroyed. The remaining, undamaged assets produce an income stream that has a present value of only 1,000. Therefore, the fire has led to reduction in the value of

Scope Economies

Show graphically and explain how taking advantage of scope economies affects the market structure of an industry.

Draw a Production possibility frontier

4. Jasmine's Snack shop sells two brands of potato chips. Brand X costs Jasmine 60 cents per bag, and brand Y costs her $1. Draw Jasmine's production possibilities frontier if she has $60 budgeted to spend on potato chips. Why is it not " bowed out" ?

Decision Making for accounting

(See attached file for full problem description) --- Kuhn Bicycle Company has been manufacturing its own seats for its bicycles. The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cos


AFN COMPANY Income Statement For the Year Ended December 31 (Variable Costing) AFN COMPANY Income Statement For the Year Ended December 31 (Variable Costing) 2005 2006 Sales Variable expenses Variable cost of goods sold Inventory, January 1 Variable manufacturing   

Economics and management

8. The difference between the short-run and the long-run production function is: A. three months or one business quarter B. the time it takes for firms to change all production inputs C. the time it takes for firms to change only their variable inputs D. more information is required to answer

Job Order Costing Problem

Under what conditions would you choose a job-costing system and under what conditions would you choose a process-costing system? Give some examples of products that would be costed under each method.

Economies of scale

"Because of economics of scale, it is sometimes more cost effective for a firm to operate a large plant at less than maximum efficiency than a small plant at maximum efficiency." Do you agree or disagree and why? Adding personal experience/knowledge is always appreciated!

Production Possibilities curve

N What is the best answer? 1. A production possibilities curve a. that shows opportunity cost is a straight line. b. has time on one axis and space on the other. c. cannot be used to explain one of two alternatives for a nation. d. shows we are faced with scarcity. 2. The principle of increasing marginal oppor


OPERATIONS MANAGEMENT ________________________________________ In the automobile Industry what would an example of an Operations Management Issue Be? What would be some facts and circumstances directly related to an issue? Why is it is an Operations Management Issue? How can it be turned into an operations manag

Short run cost function

A manufacturer of electronics products is considering entering the telephone equipment business. It estimates that if it were to begin making wireless telephones, its short-run cost function would be as follows. Q(thousands) AVC AC MC ___________

Economics and management

1. What are the main characteristics of a perfectly competitive market that cause buyers and sellers to be price takers? 2. A perfectly-competitive firm (a firm that operates in a perfectly competitive market) has the following cost function: TC = 2000 + 10Q + 0.02Q^2 The market price is $25, so that TR = PQ = 25Q. W


Economists have advanced a number of theories to explain the nature and effect of discrimination in labor markets. in the most basic theory, white men and black men are assumed to be perfect substitutes that are equally productive in producing a good. a) Depict an isoquant map depicting a typical firm's use of two inputs - w

Short Run Profit Maximizing

The manufacture of high-quality flatbed scanners is trying to decide what price to set forits product. The costs of production and the demand for the product are assumed to be as follows:D TC = 500,000 + 0.85Q + 0.015Q and MC = 0.85 + 0.03Q; Q =14,166 - 16.6P2a. Determine the short-run profit maximizing price. b. Show on a di

Economics help

From your knowledge of the relationships among the various production functions, complete the following table: Variable Input Total Product Average Product Marginal Product L TP L* (=Q) AP L* MP L* 0 0 - - 1 _____ _____ 8 2 28 _____ _____ 3 _____ 18 _____

Demand and cost

Q P ATC #of Shoe per shoe per Shoe 100,000 $100 $20 200,000 80 15 300,

Fixed Costs to be Considered for a Contribution Income Statement

This is an accounting problem: Im trying to compile a contribution margin statement and I am having problems deciphering what I should include for fixed costs. Can anyone help me? Here are the Activities: Start-up costs Research & Development Raw Materials for manufacturing Salaries to selling and office employees Wag

minimum Annual Total Cost

I need to model and solve this problem using Excel spreadsheets. I need to be able to understand how to derive the answer. So, I need to see the formulas and the step by step approach so I can see how it was done and learn/understand for future exercises. It's very important that I'm able to see the work involved so I ca

Plotting production curve

The questions asked that suppose that, because of important technological improvements, the society in question can double its production of tractors at each level of food production. If so, is this society on its new production possibilities curve if it produces 20 million tons of food and 16 million tractors? Plot the new pr

Cost and Labor Question

After a study done a company shows a table below summarizes the results from the study: This is based on 5 untis of capital is currently used. Workers are paid at $50.00 per unit. Per unit capital costs are $10.00 and a product is sold for $5.00 each. Given this information optimize your Human Resources and Production decis

Cost and Production Problem

The Best Plane Company supplies airplane sheet metal panels that are used in exterior of the planes. Making these panels require 5 sheet metal forming machines, which costs $300 each and workers. These workers can be hired on an as needed basis in the market at $7,000.00 each. Market price is each panel is $50.00 dollars eac