Cost of Production in the Short-run. SHOW FORMULA IN EXCEL
Price of Labor (L) is PHP 100 while Price of Capital (K) is PhP 50. What is the best cost-minimizing combination of K and L?
| Price of Capital (K) | Price of Labor (L) | TP aka Q | Total Fixed Cost | Total Variable Cost | Total Cost | Ave Fixed Cost | Ave Variable Cost | Ave Total Cost | Marginal Cost |
| 10 | 0 | 0 | |||||||
| 10 | 1 | 14 | |||||||
| 10 | 2 | 35 | |||||||
| 10 | 3 | 62 | |||||||
| 10 | 4 | 91 | |||||||
| 10 | 5 | 121 | |||||||
| 10 | 6 | 150 | |||||||
| 10 | 7 | 175 | |||||||
| 10 | 8 | 197 | |||||||
| 10 | 9 | 212 | |||||||
| 10 | 10 | 217 |
In: Economics
|
In a perfectly competitive market: the market price is 24 Marginal cost (MC) = 2(Q) + 8 average total cost at equilibrium is 18, and average variable cost at equilibrium is 10 Part 1: The profit maximizing price is Part 2: The profit maximizing quantity is Part 3: Total revenue is Part 4: Total cost is Part 5: Average fixed cost is Part 6: Total fixed cost is Part 7: Total profit/loss is Part 8: Marginal revenue is |
|
Part 9: At this market price, would firms 1. Enter the industry 3. There is no incentive to enter or leave the industry. (assume all firms have the same cost structure) |
|
Part 10: At the market price, could this be a long run equilibrium price? (if yes=1, no=2) (assume all firms have the same cost structure) |
In: Economics
ABC corp needs to figure out cost information pertaining to product D.
Direct labor $60,000
Direct Materials 45% of OH
Overhead 92% of direct labor
Number of products produced 400 units
What is the cost of direct materials?
What is the cost of overhead?
What is the total cost of production?
What is the per unit cost?
What is the total prime cost?
What is the per unit prime cost?
What is the total conversion cost?
What is the per unit conversion cost?
What would be the selling price per unit if I need a 35% markup?
Direct materials $35,000
Direct Labor 3,500 hours @ $14.00 per hour
Overhead 65% of Direct materials
Total units produced 700
What is the total prime cost?
What is the per unit conversion cost?
What would the selling price per unit if you need 45% markup?
In: Accounting
Question 3
Answer the question on the basis of the following information.
| Number of Workers | Total Product | Marginal Product |
| 0 | 0 | --- |
| 1 | 8 | 8 |
| 2 | 10 | |
| 3 | 25 | |
| 4 | 30 | |
| 5 | 3 | |
| 6 | 34 |
The marginal product of the fourth worker
is 71/2.
is 7.
is 5.
cannot be calculated from the information given.
Question 4
At any level of output.
|
average variable cost will exceed average fixed cost by the level of average total cost. |
||
|
average variable cost will exceed average total cost in the short run. |
||
|
average total cost will exceed average variable cost by the level of average fixed cost. |
||
|
marginal cost will exceed average variable cost by the level of average fixed cost. |
Question 6
Other things equal, if the wage rates paid to a firm's labor inputs were to rise, we would expect the
|
AFC, AVC, ATC, and MC curves all to rise. |
||
|
MP curve to fall. |
||
|
AFC and ATC curves to fall. |
||
|
AVC, ATC, and MC curves all to rise. |
Question 8
If the total variable cost of 9 units of output is $90 and the total variable cost of 10 units of output is $120, then
|
the average variable cost of 10 units is $10. |
||
|
the firm is operating in the range of increasing marginal returns. |
||
|
the marginal cost of the tenth unit is $90. |
||
|
the average variable cost of 9 units is $10. |
In: Economics
8. Explain how the movement of the convection fluid as it heated up relates to masses of heated air.
9. What do you expect will occur as air masses move over cold locations? Hot locations? Explain how this movement of air masses influence climate.
10. Describe how the qualities of air masses differ depending on whether they form over land or over an ocean.
11. What climate would regions where air masses from the equator and the poles collide probably have?
12. Carbon dioxide is a greenhouse gas that causes excess solar energy to be trapped in the form of heat in the atmosphere. Discuss how carbon dioxide may affect convection currents.
13. Although it is near the Atlantic Ocean, the northwest coast of Africa is characterized by hot, dry deserts. However, the Caribbean, at approximately the same latitude, possess a hot, moist climate and even supports rainforests. Using knowledge of the Coriolis Effect and air currents explain why this is true.
14. Describe how rising and sinking air (high and low pressure) in the atmosphere explains deserts near 30°N and 30°S.
15. Air in the troposphere is heated from the bottom up by heat given off by the surface of the earth. If the sun shines equally on Seattle (near water) and Bismarck, North Dakota, explain which would get hotter during the day.
In: Physics
| Annual depreciation | $ | 3,000 | Annual mileage | 14,640 | ||
| Current year's loan interest | $ | 710 | Miles per gallon | 24 | ||
| Insurance | $ | 860 | License and registration fees | $ | 125 | |
| Average gasoline price | $ | 3.50 | per gallon | Oil changes/repairs | $ | 730 |
| Parking/tolls | $ | 660 | ||||
| a. | Calculate total annual operating cost of the motor vehicle. |
| Total variable cost | $ | |
| Total fixed cost | $ | |
| Total annual operating cost | $ | |
| b. | Calculate operating cost per mile. (Enter your answer in cents rounded to 1 decimal place.) |
| Operating cost per mile | cents |
In: Accounting
· Question 10
|
Which of the following is not true for a purely competitive seller? |
||||
|
||||
· Question 11
|
In the short-run, a firm should: |
||||
|
· Question 12
|
The short-run supply curve of a competitive firm is its marginal cost curve |
||||
|
||||
In: Economics
Steve and Sons Solar Panels has a production function of Q = 4KL and faces a wage rate of $8 per hour and a rental rate of capital of $10 per hour. Assume that, in the short run, capital is fixed at K = 10.
a. Derive the short-run total cost curve for the firm.
b. Derive expressions for the firm’s short-run average total cost,
average fixed cost, average variable cost, and marginal cost.
c. Derive the long-run expansion path function for the given
production function. d. Derive the long-run total cost curve for
the firm.
e. Derive expressions for the firm’s long-run average total cost
and marginal cost.
In: Economics
A manufactured product
has the following information for August.
| Standard | Actual | ||||
| Direct materials | 2 lbs. per unit @ $3.50 per lb. | ||||
| Direct labor | 0.5 hours per unit @ $24 per hour | ||||
| Overhead | $24 per direct labor hour | ||||
| Units manufactured | 12,400 | ||||
| Total manufacturing costs | $ | 380,400 | |||
(1) Compute the standard cost per unit.
(2) Compute the total budgeted cost for production
in August.
(3) Compute the total cost variance for August.
(Indicate the effect of each variance by selecting for
favorable, unfavorable, and no variance)
A manufactured product
has the following information for August.
| Standard | Actual | ||||
| Direct materials | 2 lbs. per unit @ $3.50 per lb. | ||||
| Direct labor | 0.5 hours per unit @ $24 per hour | ||||
| Overhead | $24 per direct labor hour | ||||
| Units manufactured | 12,400 | ||||
| Total manufacturing costs | $ | 380,400 | |||
(1) Compute the standard cost per unit.
(2) Compute the total budgeted cost for production
in August.
(3) Compute the total cost variance for August.
(Indicate the effect of each variance by selecting for
favorable, unfavorable, and no variance)
| Direct materials | |
| Direct labor | |
| Overhead | |
| Total | |
*Total budgeted cost
| Cost variance |
In: Accounting
Assume that, in the short-run, K = 16, w = 3, r = 8, and Q = 3 4KL. Graph the Total Cost, Fixed Cost, Variable Cost, Average Total Cost, Average Variable Cost, Average Fixed Cost, and Marginal Cost curves. Label your graph carefully.
In: Economics