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For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost
Q1. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output. Q2. What is the break-even price? What is the shut-down price?
Over the last 30 years the Organization of Petroleum Exporting Countries (OPEC) has had varied success in forming and maintaining its cartel agreements. Explain how the following factors may contrib
Problem 1: Since World War II, the US national debt as a percentage of GDP a. rose especially in the last ten years. b. rose, mainly as a result of wars. c. remained constant on average over the whole
1. Show the productivity change, in loaves per dollar, with an increase in labor cost (from 640 to 800 hours). 2. Show the productivity change with only an increase in investment ($100 per month more)
The marginal cost associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be charged in order to maximize revenues?
1. Plot the TFC, TFC and TC for the values of Q = 0, 1, 2, 3,.......... 10. 2. Calculate the ATC, AVC and MTC and plot on another graph. 3. Explain the relationships between ATC and MTC.
What costs should be included in WIP for direct materials and conversion costs. material ____________; conversion costs _____________.
Describe the nature of this functions scale of economies. Over what range of output does economies of scale exist? Diseconomies of scale? Show this on the graph.
In the early 1960s, Continental was able to outperform its competitors by using a secret-the marginal approach to profits. Today, of course, the secret is out, and all airlines use the marginal appr
Q1. What is the profit-maximizing output in markets 1 and 2? Q2. Calculate marginal revenue in either market.
(a) What is the marginal cost at the profit maximizing output? (b) What are the values of q1 and p1 at this output?
Consider a firm that has just built a plant, which cost $20,000. Each worker costs $5.00 per hour. Based on this information and using Excel, fill in the missing information in the table below
Q1. What is the marginal cost of the firm equal to (in dollar terms) when output is 6,000 units? Q2. What is the firm's total cost equal to when output is 6,000 units?
What is output level where average variable cost is a minimum? What is the value of average variable cost and marginal cost at the output specified in the answer to part above ?
Problem: Column 1, 2, 3, is derived from a firm’s long run expansion path. The price of capital is $50 and the price of labor is $30
Problem) How would each of the following affect the firm's marginal, average, and average variable cost curves? a. An increase in wages b. A decrease in material costs
"The best expansion path for a firm contemplating growth is along the points of tangency between the firm's isoquant and isocost lines."
In order to sell the amount computed in part A. above; at what price would the company have to offer its service? (Hint: which curve (equation) gives the relationship between the price of a good or
Q1. What is the marginal product of labor when L = 4? Q2. What is the average product of labor when L = 4? Q3. What is the marginal revenue product of labor when L = 4?
Q1. Calculate the profit-maximizing price that you should charge and quantity you should sell to the hardcore game-players Q2. Calculate the profit-maximizing price that you should charge and quantity
Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and interest expense of $75
A monopolist faces a marginal revenue function of MR = 20 - Q. The monopolist's marginal cost is $15 at all levels of output. How many units of output should the firm produce in order to maximize pr
Which of the given is an example of the prisoners' dilemma? 1. Firms in an industry increase their advertising expenditures, causing profits to rise. 2. A country provides subsidies to high technology
(a) Derive the total-, average-, and marginal-revenue schedules from Q = 0 to Q = 6 by 1' s. (b) On the same set of axes, plot the total-,average-,and marginal-revenue schedules of part (a)