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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

Production Decisions in Short Run: Continue or Not

You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable 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

Engineering Economics

Please show me the steps involved to solve the attached problems. --- 10. For a given operation the fixed costs are 4,000,000. The semi-variable costs are 20% of the fixed costs plus $5.20 per unit. The variable costs are $16.00 per unit. The business unit is looking for a 15% markup. If the units sell for $28.00 per uni

Making a cartel

The marginal cost of mining a diamond is a constant $1,000. The following schedule shows demand for diamonds that are mined in South Africa and Russia. Price ($) Quantity 8,000 5,000 7,000 6,000 6,000 7,000 5,000 8,000 4,000 9,000 3,000 10,000 2,000 11,000 1,000 12,000 a. If Russia and South Africa formed a cart

Production possibilities frontier

Construct a production possibilities frontier for a nation facing increasing opportunity costs for producing food and video games. Explain how this curve represents the most efficient use of this nation's resources. Show how the frontier changes, given the following events: ? A new and better fertilizer is invented. ? Th

Current Practice of Bundling Golf Option with Luxury Option

Need help on an optimal bundling strategy for the golf, luxury, and family options. Discuss profits under each alternative. Thanks. To: Corporate Strategy Analyst From: Marketing Department Subject: Customer Demand for Blue Jet The marketing department has extensively researched the habits of Blue Jet customers. We w

Express the difference between elastic and inelastic demand

1. a.Can you please define opportunity cost? With the aid of a carefully labelled production possibility curve, could you illustrate the concept of increasing oportunity cost. Why does opportunity cost increase? b. i.What is the difference between elastic and inelastic demand. Please be precise. ii.If a restaurant incre

Operating/production Costs Analysis - MicroEconomics

Q: Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 per year. Analyze which airline has lower costs, and explain your reasoning clearly. Be sure to include defin

Output of Profit Maximizing Monopolist

See the attached file. 1. Explain what, if any, each of the following government actions will have on the output of a profit maximizing monopolist, assuming that none of the actions is so severe as to make the monopolist shut down. Use a graphical model to demonstrate each of the following effects. a. A license fee to be paid

Problems on Productivity

1. Use the information supplied to completely evaluate the trend in productivity for the company that furnished the information (table shown below). 2. You have been presented with the approximate figures for service jobs in certain countries (as shown on the table below). You have also discovered that overal productivity inc

Optimization Problem (Profit Maximizing Production)

The Stock Corporation makes two products, paper and cardboard. The relationship between p, the firm's annual profit (in thousands of dollars) and its output of each good is {see attachment}, where Q1 is the firm's annual output of paper (in tons) and Q2 is the firm's annual output of cardboard (in tons). a) Find the profit m

Total Economic Profit Computed

Here is the Scenerio- Labor is only variable input. Output is 4000 unit Marginal Product of labor is 10 Average Product of labor is 50 Price of labor is $150 Marginal product of capital is 40 Average product of capital is 60 Price of capital is $240 Total Fixed Cost is $16000. Output is 4000. Have to find out MC, AVC, AFC, ATC

Finding Short Run, Long Run movement

Suppose Labor is a Variable Input. Capital and Land are the inputs that requires the longest time period before they can be adjusted. Explain the movement of the resources in both SHORT RUN and LONG RUN Labor Capital Land

Financial Management

(Please show work) 10. Support costs have increased in today's manufacturing environment because: (a) managers have let them get out of control (b) there is now a shift toward greater automation (c) fewer direct materials are being used in production (d) direct labor costs have increased

Profit Maximization/Marginal Costs and Benefits

Graw Mc.Swill, a well-known book publisher, has just bought the rights to publish Billy Blood's latest book "The Microeconomics Massacre." Analysts have estimated the demand for this book to be X = 50,000 - 2,000P, where P stands for per-unit price, and X stands for number of books. Graw Mc.Swill?s cost function to produce the b

Production functions and cost

I. - Professor Smith and Professor Jones are going to produce a new introductory textbook. Production Function : q = (SJ)1/2 Q = number of pages in finished book S = number of working hours spent by Spent J = number of working hours spent by Jones Smith values labor at $20 per working hour, she spent 900 hours providing t

How much profit will be associated with that level of production?

Grunnings produces drills. The profits associated with drill production are  = 50Q - Q2, where Q is the number of drills produced. The marginal profits (additional profit for each drill produced) are M = d/dQ = 50 - 2Q. (a) Unregulated, how many drills will Grunnings produce? How much profit will b


Suppose we have an economy described by the Solow growth model, with a Cobb-Douglas production function (Y=F(K,AL) = K^α(AL)^-α), a capital share of 0.5; with population, labor-augmenting productivity growth, and depreciation rates given by n =0.01 per year, x = 0.02 per year, and depreciation = 0.045 per year; and with a sav