The following terms are used to describe various economic characteristics of costs:

Required:
Choose one of the preceding terms to characterize each of the amounts described below. Each term may be used only once.
A. The cost of including one extra child in a day-care center.
B. The cost of merchandise inventory purchased five years ago. The goods are now obsolete.
C. The cost of feeding 300 children in a public school cafeteria is $450 per day, or $1.50 per child per day. What economic term describes this $1.50 cost?
D. The management of a high-rise office building uses 3,000 square feet of space in the building for its own administrative functions. This space could be rented for $30,000. What economic term describes this $30,000 of lost rental revenue?
E. The cost of building an automated assembly line in a factory is $700,000; a manually operated assembly line would cost $250,000. What economic term is used to describe the $450,000 variation between these two amounts?
F. Refer to the preceding question and assume that the firm is currently building the assembly line for $700,000. What economic term is used to describe the $700,000 construction cost?

What must be true about the relationship between marginal abatement cost and marginal damage cost to achieve the efficient level of pollution? While the efficient level can be defined in principle, why might policy instruments to obtain the efficient level be difficult to implement in practice?

Given the following cost information for company XYZ.

The following table shows a demand schedule facing a monopolist.

Quantity: 0    1   2   3   4   5   6   7   8   9  10

Prices:     25 25 24 23 22 21 20 19 18 17 16

The marginal cost of the production is always 13.00 and the profit maximizing output, average a total cost is $20.00

1. What is the profit maximizing (or loss minimizing) output for this?
2. What is the price at which that output will sell in the market?
3. Compute the total cost
4. Compute the total revenue
5. compute profit or loss at the maximizing output level

Monitoring the Cost Of Money: Interest Rates

Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs.

1. Would you, as the CFO, finance your projects as soon as possible if the cost of capital was expected to drop? Please explain.

2. More importantly, where do you find the information to analyze expected changes in interest rates?

3. Please list references and in-text citations.

Use the cost and revenue data to answer the questions.

If the firm is a monopoly, what is marginal revenue when quantity is 2525 ?

MR = $

Not a valid number

tools

x10^y

What is marginal cost when quantity is 1515 ?

MC = $

Not a valid number

tools

x10^y

If this firm is a monopoly, at what quantity will marginal profit be $0.00?

quantity =

Not a valid number

tools

x10^y

If this is a perfectly competitive market, which quantity will be produced?

quantity =

Not a valid number

tools

x10^y

Comparing monopoly to perfect competition, which of the statements are true? Select all that apply.

The monopoly is likely to be less responsive to consumers.

The perfectly competitive market's ouput is lower.

The monopoly's price is higher.

Monitoring the Cost Of Money: Interest Rates

Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would “shop” interest rates to find the best rate for your financing needs.

1. Would you, as the CFO, finance your projects as soon as possible if the cost of capital was expected to drop? Please explain.

2. More importantly, where do you find the information to analyze expected changes in interest rates?

3. Please list references and in-text citations.

4. PLEASE LOOK AT YOUR GRAMMER WHEN YOU ARE WRITING. MAKE SURE YOU HAVE COMPLETE SENTENCES SO THAT I CAN READ IT AND LIST REFERENCES PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,380 cell phones are as follows:

MyPhone desires a profit equal to a 16% rate of return on invested assets of $600,700.

a. Determine the amount of desired profit from the production and sale of 5,380 cell phones.
$

b. Determine the product cost per unit for the production of 5,380 of cell phones. Round your answer to the nearest whole dollar.
$ per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
%

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.

MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,380 cell phones are as follows:

MyPhone desires a profit equal to a 16% rate of return on invested assets of $600,700.

a. Determine the amount of desired profit from the production and sale of 5,380 cell phones.
$

b. Determine the product cost per unit for the production of 5,380 of cell phones. Round your answer to the nearest whole dollar.
$ per unit

c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
%

d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar.