Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 1,000 balls, which it sells for $9 each. At the output level of 1,000, the average variable cost is $8, the average total cost is $11.00, and the marginal cost is $9.
1. What would you expect the firm to do in the short run? in the long run?
In: Economics
When will producer surplus, as shown on a graph of demand and marginal cost, be exactly equal to the profit earned by a monopolist firm (or any firm that faces its own demand curve)?
a. When fixed costs are equal to zero
b. When the marginal cost is constant
c. When the average total cost is u-shaped
d. When fixed costs and variable costs are equal
In: Economics
With a certain medical insurance policy, the customer must first pay an annual $350 deductible, and then the policy covers 80% of the cost of x-rays. The first insurance claims for a specific year submitted by a person are for two x -rays. The first x-ray cost $680 and the second x-ray cost $930. How much, in total, will he need to pay for these x-rays?
In: Statistics and Probability
With a certain medical insurance policy, the customer must first pay an annual $100 deductible, and then the policy covers 80% of the cost of x-rays. The first insurance claims for a specific year submitted by a person are for two x-rays. The first x-ray cost $620, and the second x-ray cost $960. How much, in total, will he need to pay for these x-rays?
In: Advanced Math
Break-Even Analysis
Unit Revenue $900
Fixed Cost $50,000
Marginal Cost $400
Postage per unit $10
Fax Machine cost $90
"New Sales" Forecast 300
Confirmed future orders 100
If you knew that a 25 % discount on the last 200 units would cause the new sales to increase to a total of 430, would you do it?
In: Finance
Demand for a product is 3200 TL units per quarter. Each order has a fixed cost of 2500 TL. Annual holding cost per product is 80 TL.
Calculate: a) number of products that the company should order
b) average inventory
c) number of orders per year
d) expected time between orders
e) total relevant cost
In: Operations Management
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $13,000 and ending work in process inventory of $18,000. During the month, the cost of units transferred out from the department was $148,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be: Multiple Choice $31,000 $119,000 $132,000 $166,000
In: Accounting
In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $33,000. During the month, $250,000 of costs were added to production and the cost of units transferred out from the department was $244,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:
In: Accounting
In: Operations Management
Professor Bong has just written the first textbook in Punk Economics. It is called Up Your Isoquant.
Market research suggests that the demand curve for this book will be
D(p) = 2,000 - 100p,
where p is its price.
(a) Notice that the demand curve given above has quantity as a function of price. So, begin by rearranging that equation to get price as a function of quantity. (This is known as the inverse demand function.)
(b) The total revenue function for Professor Bong's book is _______ and the marginal revenue function is MR(y)= _______ - y/50
Now, some information on the costs of production. It will cost $1,000 to set the book in type. This setup cost is necessary before any copies can be printed. In addition to the setup cost, there is a marginal cost of $4 per book for every book printed.
(c) The total cost function for producing Professor Bong's book is C(y) = 4y +_______ and the marginal cost function is MC = _______
(d) Look at the marginal revenue function you found it part (b), and the marginal cost function you found in part (c). Set marginal revenue equal to marginal cost to find the profit-maximizing quantity of books for professor Bong to sell:
In: Economics