Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
Assume that a firm has the opportunity to employ a new machine that will increase production by five units and will cost $10 to purchase. If each unit of output can be sold for $5, then the:
How does the Cosgrove recommendation compare with Thompson’s strategy in terms of profit?
Question: The MRP of an input is... 1) the selling price of the last unit of OUTPUT 2) the increment of total revenue resulting from the use of an additional unit of input. 3) used in determining marg
Problem: Suppose an oligopolistic firm has the following cost and revenue data. 1. Fill in the blank spaces in the table.
What Advice should be given for Short run and Long run and why? If output rises $10 dollar more what gonna happen in Short run and Long run?
Q1. Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input?
Part I. What assumption gives rise to a U-shaped long run average cost curve for the firm? (Describe shortly) Part II. What ways firms in on oligopoly try to elminate or control the consequences of th
Discuss the costs and benefits of specialized task assignment relative to broad task assignment. What variables are likely to be particularly important in determining the optimal choice between thes
Give an example that depicts the law of diminishing marginal returns. Please do not use the example for the questions below, use something else.
From the figure shown below, a monopsonist's supply curve is the same as the market supply curve, and the marginal revenue product curve of team owners, the extra revenue generated by an additional
If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $10 each when they are detected in final Product testing.
What is a profit/price trade-off curve and how does it relate to moving from a competitive industry to a monopoly industry?
If a firm experiences diminishing marginal returns to a factor, it must mean: a) The factor is of poor quality b) The firm has some fixed factors c) The factor is wearing out d) The firm has decreasin
This $22,000 investment in inventories is required at the outset of the project and will be released when the project is completed. The appropriate discount rate for this project is 10%. a) Compute
Please use the graphs (I need two different graphs for this question) to show how much economic profit or economic loss the firm is making.
The optimum market quantitiy in a competitive market if: Is this the way you calculate it? If not, how do you do it?
a) Compute the cost of each machine in terms of NPV? b) Which machine will be cheaper for the company to use? Explain
1. Using the regular $4 price, calculate the point price elasticicty of demand for Diet Cola. 2. Calculate the optimal markup on cost for Diet Cola. 3. If MC per unit is $3 plus 20 cent in handling co
Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total cost exceeds its total revenue.
Which of the following is an illustration of the law of increasing opportunity costs?
A new building will cost $100,000. A company is trying to determine if the building is a good investment. What is the net present value? The interest rate is 5% and and the growth rate is 3%. Assume
Grocery stores & gasoline stations in a large city would appear to be examples of competitive markets: There are many relatively small sellers, each seller is a price-taker & the products ar
A profit-maximizing monopolist will always produce a level of output at which a. demand is elastic. b. demand is inelastic. c. price is gretaer than average total cost. d. marginal revenue is greater
Exhibit below shows a firm’s costs of production in the short run. First, complete Table below. Based on the Table, answer the following: Question 1: Find TC, TFC and TVF for an output level o
The above graph depicts a firm that tries to maximize profits or minimize losses. This firm has a Total Cost Equation of 15 + 20Q + .5Q2. Some texts describe the above situation as an oligopol