Question
In: Economics
Utilizing the following Christmas Tree production function that you had completed in Homework 2 that includes...
Utilizing the following Christmas Tree production function that you had completed in Homework 2 that includes output and cost information for a firm, respond to the questions given, assuming the firm is a perfectly competitive firm:
|
Input (Units of Water) |
Output (Christmas Trees) |
MPP |
TFC |
TVC |
TC |
AFC |
AVC |
ATC |
MC |
|
0 |
0 |
4500 |
0 |
4500 |
|||||
|
10 |
70 |
7 |
4500 |
3500 |
8000 |
64.29 |
50.00 |
114.29 |
50.00 |
|
20 |
145 |
7.5 |
4500 |
7000 |
11500 |
31.03 |
48.28 |
79.31 |
46.67 |
|
30 |
220 |
7.5 |
4500 |
10500 |
15000 |
20.45 |
47.73 |
68.18 |
46.67 |
|
40 |
290 |
7 |
4500 |
14000 |
18500 |
15.52 |
48.28 |
63.79 |
50.00 |
|
50 |
345 |
5.5 |
4500 |
17500 |
22000 |
13.04 |
50.72 |
63.77 |
63.64 |
|
60 |
395 |
5 |
4500 |
21000 |
25500 |
11.39 |
53.16 |
64.56 |
70.00 |
|
70 |
440 |
4.5 |
4500 |
24500 |
29000 |
10.23 |
55.68 |
65.91 |
77.78 |
|
80 |
480 |
4 |
4500 |
28000 |
32500 |
9.38 |
58.33 |
67.71 |
87.50 |
|
90 |
515 |
3.5 |
4500 |
31500 |
36000 |
8.74 |
61.17 |
69.90 |
100.00 |
|
100 |
545 |
3 |
4500 |
35000 |
39500 |
8.26 |
64.22 |
72.48 |
116.67 |
Assume that the selling price for Christmas Trees is
$80/tree.What would be the approximate profit maximizing rate of
output that you would want to produce?Would the firm be generating
profit above all costs at that selling price? Why or Why
not?
If the price of Christmas Trees drops to $60/tree, approximately
how many trees would now be produced for the optimum level?Are you
making profit above all costs at $60/tree? Why or Why
not?
At what price would be the short-run breakeven point?At what
price would be the firm’s short-run shut down point?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Utilizing the following Christmas Tree production function that you had completed in Homework 2 that includes...
Utilizing the following Christmas Tree production function that
you had completed in Homework 2 that includes output and cost
information for a firm, respond to the questions given, assuming
the firm is a perfectly competitive firm:
Input (Units of Water)
Output (Christmas Trees)
MPP
TFC
TVC
TC
AFC
AVC
ATC
MC
0
0
4500
0
4500
10
70
7
4500
3500
8000
64.29
50.00
114.29
50.00
20
145
7.5
4500
7000
11500
31.03
48.28
79.31
46.67
30
220
7.5
4500...
As a Christmas tree farmer, you want to know what seed type is the fastest growing....
As a Christmas tree farmer, you want to know what seed type is
the fastest growing. You plant 14 seeds and wait three years. After
three years of growth, the 14 seeds have an average height of
4.24ft and a standard deviation of 0.404ft. The tallest tree has is
4.79ft tall; (a) what is the probability that is random chance?
Assume the data follows a normal distribution. (b) Should you use a
t-score (t distribution) or a z-score (normal distribution)?
(a) Consider a one input production technology utilizing labor that is represented by the function, x...
(a) Consider a one input production technology utilizing labor
that is represented by the function, x = Aln(L) with A>0. Is
the producer’s choice set convex? Show your working.
(b) Find the total cost function associated with this production
technology.
Note: Show all necessary working and steps so that understanding
the solution is easy.
In the following Java program replace conditions in while loops to produce Christmas tree output. import...
In the following Java program replace conditions in while loops
to produce Christmas tree output.
import java.util.Scanner;
public class Tree
{
public static void main(String[] args)
{
int size;
Scanner scan = new
Scanner(System.in);
System.out.print("Enter the size: ");
size =
scan.nextInt();
int count = 0;
while (__________)
//??? condition
{
int len = 0;
// print blanks
while (____________)//??? condition
{
System.out.print(' ');
len++;
...
Problem 2: A firm has the following production function: ?(?, ?) = ? + ? A)...
Problem 2: A firm has the following production function: ?(?, ?)
= ? + ?
A) Show whether this firm’s technology exhibits constant,
increasing, or decreasing returns to scale.
B) Suppose the firm wants to produce exactly ? units and that
input ? costs $?? per unit and input ? costs $?? per unit. What are
the firm’s input demand functions?
C) Write down the formula for the firm’s total cost function as
a function of ?? , ??, and...
3. A Firm has the following production function: y = L1/3K1/2 (a) Does this production function...
3. A Firm has the following production function: y =
L1/3K1/2
(a) Does this production function exhibit increasing,
decreasing, or constant returns to scale? Prove.
(b) Suppose in the short run, capital is fixed at K = 100.
Assuming that the output and factor prices are p, w, and r
respectively, Find firms factor demand for labor. What will the
effects be when W, R, and p increase? Explain your results
intuitively.
(c) Now, suppose the government decides to impose...
You look at yourself in a shiny 9.6-cm-diameter Christmas tree ball. If your face is 26.0...
You look at yourself in a shiny 9.6-cm-diameter Christmas tree
ball. If your face is 26.0 cm away from the ball's front surface,
where is your image? Follow the sign conventions.
. A firm faces following production function: ?? = ?? 1 2?? 1 2. Suppose the...
. A firm faces following production function: ?? = ?? 1 2?? 1 2.
Suppose the rental rate of capital r=40 and wage rate for labor
w=10. (25) a) For a given level of output, what should be the
optimal ratio of capital to labor in order to minimize cost? b)
What is the minimum cost of producing 200 units? At minimum cost
for producing 200 units, how much capital and labor are needed? c)
What is the minimum cost...
2. Suppose that the production function is Y=20K0.3N0.7. With the production function, the marginal product of...
2. Suppose that the production function is
Y=20K0.3N0.7. With
the production function, the marginal product of labor is
MPN=14K0.3N-0.3.
The capital stock is K=214. The labor supply curve is
NS=100[(1-t)w]2, where
w is the real wage rate, t is the tax rate on
labor income, and hence (1-t)w is the after-tax
real wage rate.
a)Assume that the tax rate on labor income, t, equals
zero. Find the equation of the labor demand curve. Calculate the
equilibrium levels of the real...
Homework Corporation had the following equity section of the balance sheet:
Homework Corporation had the following equity section of the
balance sheet:
Common Stock, 10,000 shares
outstanding
150,000
Retained
Earnings
600,000
Total
Equity
750,000
The following transactions took place
The company issued 1,000 shares of common stock for $90 per
share
The company declared a $2.00 per share cash dividend
The company paid the dividend
The company declared and issued a 3:1 stock split
The company purchased 500 shares of company stock for $40 per
share
The company declared a $1.00...
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