Competitive Market
Explain why a monopolist must lower its quantity relative to a perfectly competitive market to maximize profits. Make sure to elaborate use examples.
Production
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Production and Firm Maximizing Output
A firm has two plants, one in the United States and one in Mexico, and it cannot change the size of the plants or the current amount of capital equipment. The wage in Mexico is $5. The wage in the United States is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product
Price/Output Determination
Price/Output Determination. Cold Case, Inc., Produces beverage containers used by fast food franchises. This is a perfectly competitive market. The following relation exists between the firm's beverage container output per hour and total production costs: Total Output Total Cost ___________ _______
The U.S. government has restricted imports of sugar and, as a consequence, U.S. consumers pay almost twice the world price of sugar in domestic markets.
The U.S. government has restricted imports of sugar and, as a consequence, U.S. consumers pay almost twice the world price of sugar in domestic markets. What instrument of trade policy has the U.S. government used to restrict the imports of sugar into the U.S. domestic market? Using an appropriate diagram, analyze the welfare
Marginal Product Analysis
Given the production function: q= 72x+15x2-x3 where Q= output and x= input a.What is the Marginal Product (MP) when X = 8? b. What is the Average Product (AP) when X = 6? c. At what value of X will Q be at its maximum? d. At what value of X will Diminishing Returns set in?
Production and Costs
1. Should businesses profit from war, why or why not? 2. Provide an example of an airline or aviation firm trying to take advantage of economies of scale. Do you think they are/were successful? In what way?
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
Short Run Production
At a product price of $32 will this firm produce in the short run? Why or why not? If it is preferable to produce, what will be the profit- maximizing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output? Total Average Average Average
Import Quota & the new economy
Assuming a products is produced both in the US and abroad what would be the effects of a US import quota on the good? Describe some of the attributes of the new economy.
Engineering Economy
I am studying for my PE Exam and have not had Engineering Economy for ages and disparately needs help in setting the problems up correctly for starters - concept is important! I have attached several problems from the workbook for your assistance. See attached file for full problem description.
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
Estimated production function in the form of a power function
Rewrite the estimated production function in the form of a power function Find the marginal product of capital, labor, and gasoline at K=200, L = 400, G = 4,000 See attached file for full problem description.
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?
MANAGERIAL ECONOMICS QUESTIONS
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
Managerial economics
Managerial economics. Isocost and Isoquant. See attached file for full problem description.
Total cost problem/cost per unit
Company A plans to produce 300,000 units next year, the production budget is: Direct labor: 600,000 Ingredients: 450,000 packaging 150,000 rent 225,000 depreciation 80,000 other fixed costs 55000 Calculate the total cost and cost per unit if the unit production is changed to 315,000 units.
Production Possibilities Before and After Trade
Plot the production possibilities data for each of the two countries separately. Referring to your graphs, answer the following: a. What is each country's cost ratio of producing plums and apples. b. Which nation should specialize in which product? c. Show the trading possibilities lines for each nation if the actual terms of
Assessing Cost Curves
1.The government says that firm X must pay $1000 in taxes simply because it is in the business of producing a good. What cost curves if any does this tax affect and does the MC change if TC changes. 2.If accounting profit is $400,000 greater than economic profit what do implicit costs equal? 3. If economic profit equals ac
Possibilities Frontier Function
I would like to draw out a Production Function showing two curves on one graph: 1) Manufacturing Goods vs. High-Tech Goods, and 2) High Tech Goods vs. Services. I think that I understand how the Possibilities Frontier graph would look for 1), but not 2). Also, I am not sure how how the composition of the Production Functions s
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" ?
Should you decrease or increase your production levels?
Should you decrease or increase your production levels, and why if the U.S. dollar begins to depreciate against all of the currencies of your overseas clients. You are the CEO of a manufacturing business.
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
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
What are the differences between absorption and variable costing methods on income statement presentation?
What are the differences between absorption and variable costing methods on income statement presentation?
What are the benefits of activity based costing? What are the limitations of activity based costing?
What are the benefits of activity based costing? What are the limitations of activity based costing?
Use the Internet or other resources to find an article relevant to activity-based costing (ABC), job costing, or process costing. Prepare a 125-word executive summary of your article. Briefly summarize the major topics of the article
Use the Internet or other resources to find an article relevant to activity-based costing (ABC), job costing, or process costing. Prepare a 125-word executive summary of your article. Briefly summarize the major topics of the article
Your roommate asks your help in understanding the major steps in the flow of costs in a job order cost system. Identify the steps to your roommate.
Your roommate asks your help in understanding the major steps in the flow of costs in a job order cost system. Identify the steps to your roommate.