Assume you own a machine tool manufacturing company that produces one standardized type of tool. Your total costs change as shown in the table below: Costs of machine tool manufacturer (1) Quantity (thousands of machine tools per day) (2) Total Cost (TC) (thousands of dollars per day) (3) Average Cost (ATC) (dollar
In the short run, shouldn't one produce as long as fixed costs are being covered? I'm confused on this. WHich costs should you be concerned with for the short run? fixed, total, average variable, overhead, average fixed? there are so many.
11. How long is the "short-run" time period in the economic analysis of the market? a. three months or one business quarter b. total time in which sellers already in the market respond to changes in demand and equilibrium price c. total amount of time it takes new sellers to enter the market d. total
As a kid, you recorded the costs of your Kool-Aid stand and drew your long-run average-cost curve. Now you work in a video chip factory. Would you expect any similarities IN SHAPE between the kool-aid cost curve and the long-run average cost curve for the chip factory? Would you expect any differences? Question requires specific
Suppose, after graduation, you take a job in a factory in Chile that produces faux leather shoes. One day, your boss comes in and says, "this factory isn't operating at a profit and so we can minimize our losses by closing up shop." Yikes! You didn't think you'd lose your job that quickly. Your boss continues talking and states
Will a firm shut down in the short run if it is losing money, even though it can cover its fixed costs? Explain why this is true or false and include graph(s).
A case study states that the concession stand accounts for well over half the profits at most theaters. Given this, what are the benefits of the staggered movie times allowed by multiple screens? What is the benefit to a multiscreen theater of locating at a shopping mall?
Some charge that third degree price discrimination is unfair or that it reduces social welfare. Why does charging one group a lower price hurt anyone? Please explain. b. McDonald's charges a higher price for a Big Mac in New York City than it does in a small town in Iowa. Is this an example of third degree price discrimin
There is some data you are given, and on the basis of the data, you are asked to make a decision. Now here are some definitions TR = Total Revenue TC = Total Cost FC = Fixed Costs VC = Variable Costs Now, TC = FC + VC, and Profit = TR - TC = TR - FC - VC. Let us now substitute the data, and TR = $30 per unit * 300
Please help with the following problem. In mid-1968, the government imposed a 10% income tax surcharge on personal and corporate income to pay for the costs of the Vietnam War. It was widely believed that the surcharge was temporary, and in fact it was removed in mid-1970. Based on the permanent income hypothesis, what would
Suppose that Panasonic Electronics (maker of phones) and MCI (long distance telephone services) decide to merge. What argument would tell the United States Justice Department that it may be socially beneficial for the merger to take place?
Airline flies only one route. Demand for each flight is Q=500-P. Cost of running each flight is $30,000 plus $100 per passenger. a. What is the profit maxmizing price the airline will charge. b. How many people will be on each flight. c. What is the profit for each flight. d. If fixed cost is $41000 instead of $30,000, wil
(Revised) Please be specific and detailed in answering each of the discussion questions below. (Note: Number of pages to answer all questions, if required, should be no more than 7 pages) Finally, please list my questions before each of your detailed responses so I can follow along with clarity. 1. Discuss in detail wh
If a company's only variable input is labor and 50 workers are used, the average product of labor is 50, the marginal product of labor is 75, the wage rate is $80 and the total cost of fixed input is $500, which is true? Average variable cost is rising marginal cost is rising average variable is lowering you can not
When demand is weak, the firm will have the option of shutting down in the short run. But what condition must be met for it to make sense for the firm to shut down? If this condition was met, how would the firm benefit by shutting down? Furthermore, what if the weak demand continued in the long run? What do you change about the
Please let me know if I did this correctly. Assignments: Elasticity As the Midwest regional manager for American Airlines, you have recently undertaken a survey of economy-class load factors (the percentage of economy-class seats that are filled with paying customers) on the Chicago-Columbus, Ohio route that you service
Subject: Price theory Details: Consider the elasticity of demand for drugs. How does it affect the terms of this trade-off (talking about short run and long run gains from patents)? Can you explain why, if the elasticity of demand is low, the short-run allocative distortion associated with patent protection?the ?welfare burden
All of the following statements are correct EXCEPT: (a) The short-run price needs to cover only the costs that vary in the short run. (b) The short-run price needs to cover both variable and fixed costs. (c) The long-run price needs to cover both fixed and variable costs. (d) Incremental costs are relevant costs in the
Please explain whether the following goods or services are price elastic or inelastic in both the short run and long run. a. Gasoline b. Texaco gasoline c. Salt d. Large screen TV e. Cosmetic surgery f. Lasik eye surgery g. A product or service from your organization
Please be as specific as possible and break-down answers in simple steps. 1. A monopolistically competitive firm faces a demand curve given by p=475 - 11q. It has a total cost curve given by LTC=500q - 21q2 + q3. The firm's long run average and marginal cost curves are LAC=500 - 21q + q2 and LMC=500 - 42q + 3q2. The slope