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Gordon’s Pizzeria, a firm that is small relative to both the labor market and the pizza market, can hire workers at an hourly wage of $12. The 50th hour of labor added 4 pizzas to the firm&rsq
Indicate whether each of the following statements is true or false and give the reason. (a) A firm should stop expanding output after reaching diminishing returns and (b) if large and small firms op
Problem: How about if we try an EXAMPLE of MR=MC for a perfectly competitive firm? How many units would the above profit-maximizing firm produce?
Compute the firm's annual net cash flows (NCF) for capital budgeting purposes for the next 10 years, assuming that the new processing unit is purchased.
Q1. Assuming average variable costs are constant at all output levels, what is Kathy's total cost function before the proposed change? Q2. What will the total cost function be if rice loafs are prod
1) How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold? 2) Evaluate the impact of such a price cut on (i) total revenue, (ii) total costs,
a) Why is the demand of labor a derived demand? b) What is the relationship between productivity and the wages earned by an employee? What are some factors that determine the level of your income?
After a 10% price discount, a firm found that its weekly sales increased by 30%. If the marginal cost (MC) of this product is $40 each, what is the optimal price for this product?
Your supervisor recently instituted a plan that encourages her managers to share non-private demographic characteristics voluntarily provided by those who purchase your firm's final product.
Q1. Compute the profit-maximizing level of output and price if the company sells all of its tickets at one price. Q2. Compute the profit-maximizing level of output and price if it charges different pr
Suppose market price is $30. How much will the firm produce in the short run? How much are total profits?
Output is produced according to Q = 4L + 6K, where L is the quantity of labor input and K is the quantity of capital input. If the price of K is $12 and the price of L is $6, then the cost minimizin
Economists at General Industries have been examining operating costs at one of its parts manufacturing plants in an effort to determine whether the plant is being operated efficiently. From weekly c
You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. You want to examine price and output strategy.
Suppose the market price of sugar is 22 cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound. Is the farmer maximizing profit? If not, should
Q1. Determine the firm's optimal output and price Q2. The night supervisor believes that keeping QopyQat open for two more hours in the evening would substantially increase volume.
Under what circumstances would it be economically efficient for this clinic to use more R.N.s and fewer M.D.s (given (MPmd>MPrn)? Explain?
If the firm has fixed costs of $900, calculate the short run average fixed costs, average total costs, total cost, and marginal cost.!
Use the given data of a firm's total cost schedules to calculate its average variable cost, average fixed cost, average total cost, and marginal cost schedules.
Explain any two causes of economies of scale or diseconomies of scale. How is the U shape of the long run ATC different from the U shape of the short run ATC?
If the price of each unit of output is $10 and each worker hired must be paid $40 per day, how many workers should Ms. Smith hire?
Discuss two factors that would increase demand for labor. (Hint: Recall that the demand for factors of production or resources is called a derived demand)
When a firm engages in cost-plus pricing: Select one: a. It is ignoring principles of profit maximization as fixed cost is included in the determination of the selling price
Problem: 1. A firm under monopolistic competition faces the demand curve: P = 500 - 12.5Q. The firm's marginal cost is MC = 200 + 5Q. a. Find the firm's profit-maximizing output and price.
Problem: Is it true that in the long run insurance (Obamacare) companies can make profits at the expense of their customers?