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
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
The supplier that has the lower inventory cost will also have the lower total cost. True False
In: Finance
Your company makes widgets. The total cost of production consist of $1,500,000 in fixed cost + variable costs of $150 per widget produced. If your firm makes 10,000 widgets what will the total cost per widget produced?
In: Accounting
A3
-
10. Imagine a firm with the short run cost structure: Total Cost ( TC)= 9 +q2Marginal Cost(M)= 2q.
(a)
Write out expressions for total fixed cost (
FC
), total variable cost (
VC
), average variable cost (
AVC
),
and average total cost (
ATC
). Be sure to show your work. [4]
(b)
At what quantity is
AVC
at its minimum (at what
AVC
level)? At what quantity
is
ATC
at its
minimum (at what
ATC
level)? [3]
(c)
Given your results above, sketch
MC
and
AVC
from
q
= 0 to
q
= 9. Calculate
ATC
for q = 1, 3, 6,
and 9. Use this information to add
ATC
to your diagram (from
q
= 1 to
q
= 9). [4]
(d)
Assuming that the firm is
a price
-
taker operating in a competitive market, derive an expression for
the firm’s supply curve, (ie. the profit maximizing output for the firm as a function of the market
price). What is the shut
-
down price for this firm (ie. at what price would this f
irm choose to produce
zero)? [3]
(e)
Suppose the competitive market is composed of firms (and potential firms) identical to the one
described above. Is it possible that a market price of $8 is a short run equilibrium price? Is it
possible that a market pric
e of $4 is a short run equilibrium price? Explain. [4]
(f)
Assuming that the minimum point of the short run
ATC
curve for all firms is also the minimum point
of the long run average cost curve (
LRAC
) is it possible that either of the prices identified in par
t (e)
is a long run equilibrium price? Explain. [4]
(g)
Under the assumptions of parts (e) and (f), what is the long run equilibrium price in this market? If,
at that price, the quantity demanded in the market is 882 units, what is long run equilibrium numb
er
of firms in this market? [4]
In: Economics
Prepare a statement of cost showing:
(a) value of materials consumed (b) total cost of production (c) cost of goods sold and (d) the amount of profit From the following details relating to a toy manufacturing concern:
Opening stock: raw materials 25,000
Finished goods 20,000
Raw materials purchased 2, 50,000
Wages paid to laborers 1, 00,000
Closing stock: raw materials 20,000
Finished goods 25,000
Chargeable expenses 10,000
Rent, rates, and taxes (factory) 25,000
Motive power 10,000
Factory heating and lighting 10,000
Factory insurance 5,000
Experimental expenses 2,500
Waste materials in factory 1,000
Office salaries 20,000
Printing and stationery 1,000
Salesmen’s salary 10,000
Commission to traveling agents 5,000
Sales 5, 00,000
In: Accounting
Why is it mathematically correct that the Marginal Cost curve crosses the average total cost curve at its lowest point? Show your work using graphs
In: Economics
Write the pseudocode that prompts the user for their first and last name. Display the first initial of their first name and their last name to the user.
Ask the user to input a phone number.
The program checks which part of Colorado a phone number is from using the values below.
If the second digit of the phone number is one of the below digits, print the phone number and which part of Colorado it is from. If none of the digits are entered, display the phone number and state it is not in Colorado.
If the number is in Estes Park, the user should see: phone number + “is in Estes Park, it is time to go pick up your new Corgi puppy!”
If the second digit of a phone number is:
0 = Boulder
1 = Colorado Springs
2 = Denver
7 = Estes Park
In: Computer Science
Park Corporation is planning to issue bonds with a face value of $630,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)
3. What bond payable amount will Park report on
its June 30 balance sheet? (Enter all amounts with a
positive sign.)
In: Accounting
A firm has won the bid to complete a renovation of a hotel and
you are to manage the labor to complete the job. The firm is
assigning two workers named Ben and Jerry. The floors and walls
must be redone and there are 60 hotel rooms to complete. The firm
is not receiving payment by the hour but by the job. The firm's
goal is to minimize time spent on this project. The table below
shows the time it takes to complete a single room which has two
aspects of the job.
Floors Walls
Ben 3 hours 4 hours
Jerry 2 hours 3 hours
How many hours would it take to complete the entire hotel if each
worker specialized in a task in which they had the comparative
advantage? Do not let time pass with idle workers.
In: Economics