A firm has a fixed cost of $100 and average variable cost of $5xq, where q is the number of units produced.
a. Construct a table showing total cost for q from 0 to 10.
b. Graph the firms marginal cost and average total cost curves.
c. How does marginal cost change with q? What does this suggest about the firm’s production process?
In: Economics
suppose that the inverse demand function, marginal revenue, marginal cost and total cost for a gizmo product produced by a monopolist are as follows
p=100 -2Q
MR= 100-4Q
MC=2
TC=10+2Q
a. Find the monopolist's profit maximizing output and price.
b. Calculate the monopolist's profit/loss ,if any
c. What is the Lerner Index for this industry
In: Economics
"On a cost graph, take difference between the revenue rectangle (price times quantity) and the cost rectangle (average cost times quantity). Then you can find the firm's profit"
what is revenue rectangle and cost rectangle?
In: Economics
17. Claim: The average cost to repair washing machine A is less than the average cost to repair washing machine B. Test at α = 0.1
Data: A sample of 10 washing machine A’s have an average repair cost of $208 and a standard deviation of $25. A sample of 15 washing machine B’s have an average repair cost of $221 and a standard deviation of $29.
Assume that the population standard deviations for repair costs are the same for each
(a) Are these data statistically significant evidence to support the claim?
(b) Are these data statistically significant evidence to refute the claim?
In: Statistics and Probability
A company produces products at a cost of $38 each. Defective products cost an additional $15 each to repair. The probability of no defective products is 80%. The probability of 5% defective products is 20%. What is the expected cost of producing 500 products? $
In: Statistics and Probability
When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because
In: Economics
An incomplete cost of goods manufactured schedule is presented
below.
Complete the cost of goods manufactured schedule for Monty
Company.
|
MONTY COMPANY |
||||||
| Work in process (1/1) | $213,900 | |||||
| Direct materials | ||||||
| Raw materials inventory (1/1) | $ | |||||
| Add: Raw materials purchases | 164,300 | |||||
| Total raw materials available for use | ||||||
| Less: Raw materials inventory (12/31) | 29,530 | |||||
| Direct materials used | $185,570 | |||||
| Direct labor | ||||||
| Manufacturing overhead | ||||||
| Indirect labor | 25,530 | |||||
| Factory depreciation | 44,900 | |||||
| Factory utilities | 74,980 | |||||
| Total overhead | 145,410 | |||||
| Total manufacturing costs | ||||||
| Total cost of work in process | ||||||
| Less: Work in process (12/31) | 86,890 | |||||
| Cost of goods manufactured | $543,210 | |||||
In: Accounting
Cost of Quality Analysis
The ABC Company has collected the following cost data for the year:
Receiving Inspection $ 15,232
Production Scrap $ 32,150
Rejected Products $ 6,200
Product Design $ 25,422
Customer Adjustment Credit $ 85,654
Online Inspection $ 17,248
Quality Team Meeting $ 7,540
Downgrading Products $ 1,125,328
Customer Need survey $ 3,250
Final test $ 25,758
Prototyping $ 136,802
In: Accounting
In: Accounting
In a lease-versus-buy analysis, the correct comparison is the cost of lease financing versus the cost of the alternative financing method to be used if the asset is not leased.
| True |
| False |
In: Finance