The type of market structure most likely to be allocatively efficient is

pure monopoly.

monopolistic competition.

a purely price discriminating auction.

Which of the following changes will not affect the market supply or the market demand in a purely competitive industry?

a change in the number of firms

a change in the number of buyers

a change in fixed costs

a change in marginal costs

The prices of raw materials increase in a purely competitive industry. This change will result in a(n)

decrease (downward shift) in the average total cost curve for firms in the industry.

increase (rightward shift) in the short-run supply curve for firms in the industry.

increase (upward shift) in the marginal cost curve for firms in the industry.

decrease (downward shift) in the marginal revenue curve for firms in the industry.

As long as its total revenues are greater than its total costs, a firm will earn positive economic profits.

True

False

A purely competitive firm is producing at the point where its marginal cost equals the price of its product. If the firm increases its output, then total revenue will

decrease and profits will decrease.

decrease and profits will increase.

increase and profits will decrease.

increase and profits will increase.

BBB Company specializes in computer manufacturing. BBB takes many orders from multiple customers per year. For 2019, BBB estimates total manufacturing overhead costs throughout the plant to amount to $900,000. The company anticipates that total direct labor hours worked for all jobs throughout the year will amount to 40,000 hours and also predicts that total machine hours will amount to 60,000 hours. The company uses direct labor hours as its allocation base. Make sure to show all work!!!!

1. Compute the pre-determined overhead rate:

2) Use your answer from Question #1 to solve this question. During the year, BBB has worked on two jobs, which are listed as follows:

                                                            Job 101                                               Job 102

Actual DM Cost                                   $33,000                                                           $47,500

Actual DL Cost                                    $16,700                                                           $22,550

Actual Direct Labor Hours                   1,200                                                   1,900

Actual Machine Hours                            660                                                      426

Units Produced                                         40                                                        50

1. Apply overhead to Jobs 101 and 102.

2. Compute total manufacturing costs for Jobs 101 and 102.

c) Compute unit cost for Jobs 101 and 102.

8.Now suppose country A imposes a tax T on A's production of qA to curb emissions. Country B, however, is not taxed. A's cost function is now CA (qA)=46qA, while B's cost function is CB(qB)= 4qB . World demand is p=99-Q. The amount of greenhouse gas emissions per unit is still 0.5, such that total world emissions are given by 0.5Q. What are total world emissions after country A enacts a carbon tax?

This question will show how incomplete regulation can lead to "carbon leakage". Despite A reducing output (and thus emissions), total world emissions are only partially reduced, since B responds by increasing its output (and thus emissions). Estimation of carbon leakage is an active area of research in environmental economics.\

9. Consider the oil-producing countries of A, B, and C. Each has a marginal cost of zero. World demand is given by Q=674-P. Suppose the three countries form a cartel, and that none of them has an incentive to deviate from the cartel. By how many units lower is the total output of oil under the cartel relative to the Cournot solution?

Suppose there are only two firms, firm1 and firm2, in the market. They both choose
a quantity to produce simultaneously. The market price is determined by the market
demand:
p =130-(Q1+Q2)
where Q1 is the output quantity of firm1 and Q2 is the output quantity of firm2. Firm1’s
total cost of production is 10Q1 and firm2’s total cost of production is 10Q2. That is, both
firms have a constant marginal cost of 10.

Task 1. What’s firm 1’s best response function? Plot it with Firm 1’s choice on the horizontal axis and firm2’s choice on the vertical axis.

Task 2. What’s firm2’s best response function? Plot it in the figure from Task 2. Clearly
label which curve is which firm’s best response function.

Task 3. What’s the Nash equilibrium outcome? Howmuch is the profit of firm1 at the
Nash equilibrium?

Task 4. If the two firms collude and jointly decide on the total output quantity that
maximizes the joint profit, what is this total quantity? Howmuch profit does firm1 make if
each produces half of this quantity?

Suppose there are only two firms, firm1 and firm2, in the market. They both choose
a quantity to produce simultaneously. The market price is determined by the market
demand:
p =130-(Q1+Q2)
where Q1 is the output quantity of firm1 and Q2 is the output quantity of firm2. Firm1’s
total cost of production is 10Q1 and firm2’s total cost of production is 10Q2. That is, both
firms have a constant marginal cost of 10.

Task 1. What’s firm 1’s best response function? Plot it with Firm 1’s choice on the horizontal axis and firm2’s choice on the vertical axis.

Task 2. What’s firm2’s best response function? Plot it in the figure from Task 2. Clearly
label which curve is which firm’s best response function.

Task 3. What’s the Nash equilibrium outcome? Howmuch is the profit of firm1 at the
Nash equilibrium?

Task 4. If the two firms collude and jointly decide on the total output quantity that
maximizes the joint profit, what is this total quantity? Howmuch profit does firm1 make if
each produces half of this quantity?

A Hospital has a budget of 75,795,000 and must reduce expenses by 12,000,000 in the upcoming year so service lines must be eliminated.One group of board members want to prioritize lines by financial performance. (cut something ) and the second group want to maximize the number of patients served. Make two program budgets. A-Rank programs by the financial performance, what program (s) should be cut
B-Rank the programs by the cost per patient, What programs(s) should be cut to get the most patients seen

Pitt Company has the following data for 20X4 concerning its manufacturing operations. PITT COMPANY DATA FOR 20X4 SALES AND MANUFACTURING OPERATIONS Selling price per unit $ 120 Variable manufacturing cost per unit 95 Variable operating cost per unit 15 Total fixed manufacturing costs 500,000 Total fixed operating costs 100,000 The company produced 100,000 units during the year and sold 90,000 of those units. REQUIRED: Answer the following questions related to the above data, showing appropriate calculations to support your answers. (1) What is the company's total revenue for the year? (2) What is the company's full absorption cost per unit? (3) What is the company's contribution margin per unit? (4) What is the company's total gross profit for the year? (5) What is the company's net income for the year under variable costing? (6) What is the value of the company's ending inventory under variable costing? (7) What is the company's net income for the year under full absorption costing? (8) What is the value of the company's ending inventory under full absorption costing?

PART 1

The materials used by the Hibiscus Company Division A are currently purchased from outside supplier at $55 per unit. Division B is able to supply Division A with 23,100 units at a variable cost of $52 per unit. The two divisions have recently negotiated a transfer price of $51 per unit for the 23,100 units. By how much will each division's income and the company's total income change as a result of this transfer? Enter an increase as a positive number and a decrease as a negative number.

PART 2

The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows:

The amount of the variable factory overhead controllable variance is

a.$1,174 favorable

b.$1,468 unfavorable

c.$1,468 favorable

d.$0

When the federal government builds a project such as a dam, a road, or a bridge, it conducts a cost-benefit analysis in which the total costs of building the project are compared with the total benefits the project is supposed to bring. For example, in the aforementioned Tellico Dam, the costs of building the dam over the few years it took to build the dam and clear the land for the reservoir were approximately $100 million. The government (Tennessee Valley Authority) then estimated the total monetary benefits authorities believed would accrue over the next several decades, including tourism, planned residential developments and the like, comparing the estimated benefits to the costs of building the dam, and then said that the estimated benefits totaled more than $100 million, which meant the government would approve the project. (For example, if the government believed that in 20 years a developer would build a project that would cost $10 million to build, the government would put a total of $10 million in its up-front benefit tally.)

Given what we have covered in this class, is this (economically speaking) an accurate way to do a cost-benefit analysis? Why or why not? Explain in detail.