A monopolist faces the following demand curve: P = 400 - 3Q, its total cost is given by: TC = 3000 + Q² and its marginal cost is given by: MC = 2Q.

(a) If it is a single price monopolist, what is its profit maximizing price and quantity? Show your work. How much is the profit? How much are consumer surplus and producer surplus?

(b) Suppose it is a first degree price discriminator instead of a single price monopolist. What is the lowest price that the monopolist will charge? How much will be the profit (loss) of the firm? Show your work. How much are consumer surplus and producer surplus?

10-Red Corp. constructed a machine at a total cost of $54 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 11-year life using the straight-line method. The residual value is expected to be $3 million. At the beginning of 2018, Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2018? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Multiple Choice

$4.64 million.

$8.24 million.

$4.05 million.

$3.68 million.

the total cost required to produce x units of electrical tape and Y units of packing tape and y units of packing tape is given by C(x,y)=2x^2+3y^2-2xy+2x-126y+3800

find the number of units of each kind of tape that should be produced so that the total cost is a minimum. Find the minimum total cost.

2. Compute the total manufacturing cost with the following information for the month.

Athletic world began October with merchandise inventory of 72 crates of vitamins that cost a total of $3600 During the month Athletic world purchased and sold merchandise on account as follows

Data Table

Oct 5th Purchase 120 crates @ 78 each

13 Sale 130 crates @ 98 each

18 Purchase 124 crates @ 90 each

26 Sale 130 crates @ 102 each

The Camel Company produces 13,200 units of item Roto 454 annually at a total cost of $250,800.

The Yukon Company has offered to supply 13,200 units of Roto 454 per year for $18 per unit. If Camel accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $40,920 per year. At what price would Camel be indifferent to Yukon's offer?

2.

Item N29 is used by Tyner Corporation to make one of its products. A total of 12,800 units of this Item are produced and used every year. The company's Accounting Department reports the following costs of producing Item N29 at this level of activity:

An outside supplier has offered to make Item N29 and sell it to the company for $28.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the Item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the Items were purchased instead of produced internally. In addition, the space used to make Item N29 could be used to make more of one of the company's other products, generating an additional segment margin of $30,800 per year for that product. What would be the impact on the company's overall net operating income of buying Item N29 from the outside supplier?

Athletic World began January with merchandise inventory of 95 crates that cost a total of $3800. During the month Athletic World purchased and sold merchandise as follows.

Jan 5 Purchase 155 crates @ $71 each

13 Sale 180 crates @ $110 each

18 Purchase 193 crates @ 75 each

26 Sale 200 crates @ $114 each

1.

Prepare a perpetual inventory​ record, using the FIFO inventory costing​method, and determine the​ company's cost of goods​ sold, ending merchandise​ inventory, and gross profit.

2.

Prepare a perpetual inventory​ record, using the LIFO inventory costing​method, and determine the​ company's cost of goods​ sold, ending merchandise​ inventory, and gross profit.

3.

Prepare a perpetual inventory​ record, using the​ weighted-average inventory costing​ method, and determine the​ company's cost of goods​ sold, ending merchandise​ inventory, and gross profit.​ (Round weighted-average cost per unit to the nearest cent and all other amounts to the nearest​ dollar.)

4.

If the business wanted to pay the least amount of income taxes​ possible, which method would it​ choose?

Suppose we have a monopolist that faces an inverse demand function and total cost function of

Pd= 200−2Qd

C(Qs)=Qs^2 + 8Qs + 50

Note that the last part of this question asks you to graph much of your answers to the first parts of this question.

(a) Find the profit maximizing level of output (Q) and the corresponding price charged (P).

(b) Find the Socially optimal level of output and price. (hint: this is the case when we assume perfect competition)

(c) Graph the Demand, Marginal Revenue, and Marginal Cost curves. Find the Deadweight Loss, loss to Consumer Surplus and gain to Producer Surplus due to monopolistic power.

DWL =

Loss to CS =

Gain to PS =

1. Prepare the journal entries that would be recorded using a periodic inventory system.

2. Prepare the journal entries that would be recorded using a perpetual inventory system, including any “book-to-physical” adjustment that might be needed.