In a competitive market which of the following is the firm’s demand curve?

The average total cost curve

The average revenue curve

The marginal revenue curve

The marginal cost curve

The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units.

Prepare a production cost report for the Welding Department for the month of February. Transferred-in costs are considered materials costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units.

Prepare a production cost report for the Welding Department for the month of February. Transferred-in costs are considered materials costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

1. a. Consider a perfectly competitive firm in the short run. On a diagram, draw the firm's average cost, average variable cost, and marginal cost curves. Briefly discuss the relationship among these curves. b. On your diagram, show how the profit maximizing level of output is determined for this firm, given a market price. Show the firm making a positive profit. c. On your diagram, show total revenue, total cost and profits associated with the production level from part b. d. On your diagram show the firm’s short run supply curve. Explain clearly why this is the short run supply curve for the firm.

Consider a market that faces the following market supply and demand functions

Q S = 2 + p

Q D = 10- 1/2 p

where identical firms face the total cost function of T C = 4 + q + q²

a) What is the market price?

b) Derive the average variable cost, average total cost, and marginal cost functions.

c) In the short run, how much does each firm produce?

d) In the short run, how much economic profit or loss will be obtained?

e) Based on the results in part (d), will firms want to enter or exit the market? Why?

3. The revenue derived from the sale of shirts is represented by ? = 521? − ?2 where n is the number of shirts sold and R is the daily revenue. It is also known that the fixed cost is $5,364 per day plus a variable cost of $205 per shirt.

1. (a) Construct an equation to express the total cost per day (TC), in $, in terms of n.

2. (b) Find the profit function using the equation: Profit (P) = Revenue – Total Cost.

3. (c) Hence, determine the values of n for which the shop can make a profit.

4. (d) Find the maximum profit with the profit function found in (b) and the corresponding number of

shirts sold per day.

14,       A residential property is acquired on the first day of the tax year for a purchase price of $300,000 plus acquisition costs of $15,000. The property is held for five years and sold on the last day of the tax year.

a. What is the cost-recovery deduction for each full year of acquisition?                                      

b. What is the annual cost-recovery deduction for each full year of ownership?                           

c. What is the cost-recovery deduction for the year of disposition?                                               

d. What is the total cost recovery taken during the recovery period?                     

Rocky Mountain Tire Center sells 14,000 ?go-cart tires per year. The ordering cost for each order is?$35

?,and the holding cost is 50 ?% of the purchase price of the tires per year. The purchase price is ?$19

per tire if fewer than 200 tires are? ordered, ?$16 per tire if 200 or? more, but fewer than 5,000 ?,tires are? ordered, and ?$14per tire if

5,000

?a) How many tires should Rocky Mountain order each time it places an? order?

Rocky? Mountain's optimal order?

?b) What is the total cost of this? policy?

Total annual cost of ordering optimal order

Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $155,000. The electrical work required for the installation costs $16,275. Additional costs are $3,255 for delivery and $11,170 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,505. What is the total recorded cost of the automatic scorekeeping equipment? Invoice cost 155,000 Electrical work required for installation 16,275 delivery costs 3,255 sales tax 11,170 repair costs 1,505 total 187,205 included/excluded (column dr marchinery (column) dr expense (column)