The demand for a monopolist’s product is: P = 40 -2Q; the monopolist’s total cost function is: TC = 8Q + 0.5Q^2.(a)Under free monopoly, what is the numerical value of the dead-weight loss (DWL)? (b) Compute the monopolist’s break-even points and graph in the same diagram, demand (D), marginal revenue (MR), marginal cost (MC) and average cost (AC); in diagrams directly below, graph total revenue (TR), total cost (TC) and profit (pi).(c) Under short-run regulation, what are the market gains?

In using the graph for a monopolist, with demand, marginal revenue, marginal cost, and average total cost curves, explain how you find the profit maximizing level of output. (Note that this question asks about OUTPUT. The next question asks about PRICE.)

A firm’s total cost function is given by TC = 3Q^2 + 48. What are the firm’s fixed cost, variable cost, average fixed cost, average variable cost, and marginal cost functions? Provide a thorough and detailed sketch of the MC, AFC, AVC curves, as well as the average total cost (AC) curve, all in one graph. Find the point where AC is the lowest, show it in the graph.

A company shipped 6,000,000 pounds of goods to customers at a cost of $3,000,000. Total revenue is $40 million. If an individual customer orders 10,000 pounds, calculate the amount of shipping cost assigned to the customer using activity-based costing.

Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $134,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service.
  
Prepare entries to record the partial year’s depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $67,200 cash. (2) An insurance settlement of $56,448 is received due to the machine’s total destruction in a fire.

*Record the depreciation expense as of July 1, 2021.

*Record the sale of the machinery for $67,200 cash.

*Record the insurance settlement received of $56,448 due to the machine’s total destruction in a fire.

Rayya Co. purchases and installs a machine on January 1, 2016, at a total cost of $142,800. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2020, during its fifth year of service.

Prepare entries to record the partial year’s depreciation on July 1, 2020.

Record the depreciation expense as of July 1, 2020.

Prepare entries to record the disposal under the following separate assumptions:

1. The machine is sold for $71,400 cash.|

Record the sale of machinery for $71,400 cash.

2. An insurance settlement of $59,976 is received due to the machine’s total destruction in a fire.

Record the insurance settlement received of $59,976 resulting from the total destruction of the machine in a fire.

A high end steakhouse is the only real restaurant in town. They have a total cost function of ?(?) = ??? + ? ? and face a market demand for steak dinners of ??(?) = ??? − ??. a) Find the monopolist’s profit-maximizing price that they should charge. What profits would they earn?

b) Is the monopolist operating in the short run or the long run? Explain how you know. Illustrate the monopolist’s problem graphically.

c) Suppose the monopolist wants to increase their profitability. Come up with and explain two alternative pricing strategies that they could engage in.

 Wells Printing is considering the purchase of a new printing press. The total installed cost of the press is $ 2.15 million. This outlay would be partially offset by the sale of an existing press. The old press has zero book​ value, cost $ 1.01 million 10 years​ ago, and can be sold currently for $ 1.29 million before taxes. As a result of acquisition of the new​ press, sales in each of the next 5 years are expected to be $ 1.65 million higher than with the existing​ press, but product costs​ (excluding depreciation) will represent 54 % of sales. The new press will not affect the​ firm's net working capital requirements. The new press will be depreciated under MACRS- using a​ 5-year recovery period. The firm is subject to a 40 % tax rate. Wells​ Printing's cost of capital is 11.4 % ​(Note: Assume that the old and the new presses will each have a terminal value of $ 0at the end of year​ 6.)

Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes              
   Percentage by recovery year*          
Recovery year    3 years    5 years    7 years    10 years
1    33%   20%   14%   10%
2    45%   32%   25%   18%
3    15%   19%   18%   14%
4    7%   12%   12%   12%
5        12%   9%   9%
6        5%   9%   8%
7            9%   7%
8            4%   6%
9                6%
10                6%
11                4%
Totals   100%   100%   100%   100%
               

a. Determine the initial investment required by the new press.

a. Determine the initial investment required by the new press.

Calculate the initial investment will​ be:  ​(Round to the nearest​ dollar.)

b. Determine the operating cash flows attributable to the new press.​ (Note: Be sure to consider the depreciation in year​ 6.)

c. Determine the payback period.

d. Determine the net present value​ (NPV) and the internal rate of return​ (IRR) related to the proposed new press.

e. Make a recommendation to accept or reject the new​ press, and justify your answer.

SHOW ALL WORK!!! Including formulas

Minimize total cost = 4X13 + 3X23 + 8X14+ 6X24 + 2X15+ 5X25 + 5X36 + 8X46 + 2X56 + 7X37 + 3X47 + 9X57

Subject to:

X13 + X14 + X15 ≤ 1500

X23 + X24 + X25 ≤ 1000

X13 + X23 = X36 + X37

X14 + X24 = X46 + X47

X15 + X25 = X56 + X57

X36 + X46 + X56 = 1200

X37 + X47 + X57 = 800

All xij ≥ 0

Minimize total cost = 4X13 + 3X23 + 8X14+ 6X24 + 2X15+ 5X25 + 5X36 + 8X46 + 2X56 + 7X37 + 3X47 + 9X57

Subject to:

X13 + X14 + X15 ≤ 1500

X23 + X24 + X25 ≤ 1000

X13 + X23 = X36 + X37

X14 + X24 = X46 + X47

X15 + X25 = X56 + X57

X36 + X46 + X56 = 1200

X37 + X47 + X57 = 800

All xij ≥ 0