An e-scooter seller has found out that his total cost curve is given by the formula TC = 100 + b³ - 15b² + 85b where b is the number of e-scooters produce.

1. Describe this technology in terms of increasing, decreasing, or constant returns to scale.

2. What would be the e-scooters seller´s profit maximizing level of output and how much profit will he earn if the price of an e-scooter is 90 Dollar?

3. What would be his profit maximizing level of output and how much profit will he earn if the price of an e-scooter is 25 Dollar?

1. You open a perfectly competitive firm making sandwiches, with the given quantity and total cost schedules. Fill in the missing columns, and then determine your level of output and amount of profit you will earn if the price of sandwiches is a) $7; b) $5.80; c) $4.20; and d) $2.

The following table indicates the average total cost of producing varying quantities of output from 3 different plants:

1. Plot the ATC curves for all three firms on a graph.

2. What size plant should be used to produce 30 units of output? Explain.

3. What size plant(s) should be used to produce 60 units of output? Explain.

4. Are there economies of scale in these plant size choices? Explain where and label on graph above.

A natural monopolist faces the following demand curve: P = 602 - 3Q, its total cost is given by: TC = 5700 + 2Q (marginal cost is the slope of total cost).

(a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (1+2+2+2+1 = 8 points)

(b) If it is not a regulated monopolist, what is its profit maximizing price and quantity (assuming single price monopolist)? How much are the profit, consumer surplus, producer surplus and dead weight loss? (2+2+2+2+2+2 = 12 points)

(c) If the regulated monopolist is allowed to charge a fair return price (which is $32), how much are the consumer surplus, producer surplus and dead weight loss? (2+2+2 = 6 points)

Quality Cost Report

Evans Company had total sales of $2,200,000 for fiscal 20x5. The costs of quality-related activities are given below.

Returns/allowances $154,000
Design changes 99,000
Prototype inspection 6,600
Downtime 88,000
Quality circles 8,800
Packaging inspection 4,400
Field testing 4,400
Complaint adjustment 110,000

Required:

1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. Round percentages to one decimal place, when rounding is required. For example, 5.78% would be entered as "5.8".

Evans Company
Quality Cost Report
For the Year Ended 20x5
Quality Costs Total Percentage of Sales
Prevention costs:
$
$ %
Appraisal costs:
$

Internal failure costs:
$

External failure costs:
$

Total quality costs

Referring to the manual manufacturing method information given in reviewquestion 12, calculate the total annual cost to produce 100,000 parts per year. Note that theannual cost of maintenance for the machine is $16,000. Additionally, the raw material costis $2.50 per part.

Baaca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production Volume 6000 units 7000 units

Direct Materials $340,200 $396,900

Direct Labor $81,000 $94,500

Manufacturing Overhead $1,003,200 $1,015,000

The estimated total cost to manufacture 6300 units would be:

**The demand function for product is p=-8q+800 and the total cost per unit for producing q units is c=67q+80+(1000/q)

-Develop the total revenue, total cost (if not given), and profit functions. Explain these functions in few sentences.

-Compute the point elasticity of demand.

-Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic.

-Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result.

-Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results.

-What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.

-Discuss the results of 6, 7 and 8.

The supply function is given by, p=8+q, find the price and the quantity at the equilibrium.

-Calculate the consumer and producer surplus

A firm serving a market operates with total variable cost TVC = Q^2. The corresponding marginal cost is MC = 2Q. The firm faces a market demand represented by P = 40 - 3Q.

a) Suppose the firm sets the uniform price that maximizes profit. What would that price be?

(b) Suppose the firm were able to act as a perfect first degree price-discriminating monopolist. How much would the firm’s profit increase compared with the uniform profit-maximizing price you found in (a)?

During 2020, Susan Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $8,138,000. The company had the following debt outstanding at December 31, 2020:

Compute the amounts of each of the following.