You’ve been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the

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Economics

You’ve been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm’s output is $30. ...

Economics

Should a firm shut down its unprofitable operation. Firm uses 70,000 workers to produce 300,000 units of output per day. Daily wage is $100 p/worker dn price of firms output is $30. Other variable inputs is $500,000 p/day. Do not know the firms' fixed cost, but it is high ...

Economics

The firm currently uses 70,000 workers to produce 300,000 units of output per day. The daily wage (per worker) is $100, and the price of the firm’s output is $30. The cost of other variable inputs is $500,000 per day. Although you don’t know the firm’s fixed cost, you ...

Math

The firm currently uses 70,000 workers to produce 300,000 units of output per day. The daily wage (per worker) is $100, and the price of the firm’s output is $30. The cost of other variable inputs is $500,000 per day. Although you don’t know the firm’s fixed cost, you ...

microeconomics

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at the level of 180,000 ...

MicroEconomics

A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 ...

Economics

The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm’s output is $25. The cost of other variable inputs is $400,000 per day. Assume that total fixed cost equals $1,000,000. Calculate ...

microeconomics

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at the level of 180,000 ...

mirco-economics

The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm’s output is $25. The cost of other variable inputs is $400,000 per day

Microeconomics

A firm currently uses 40,000 workers to produce 180,000 units per day. The daily wage per worker is $100, and the price of the firm’s output is $28. The cost other variable input is $500,000 per day. (Note assume that output is constant at the level of 180,000 units per day...

Business

A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume that output is constant at the level of 120,000 ...

economics

A firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at the level of 180,000 ...

Economics/Math

In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20. Given these facts, explain whether the following statements are ...

Economic

Suppose that labor is the only input used by a perfectly competitive firm that can hire workers for $50 per day. The firm’s production function is as follows: Days of Labor/Units of Output: 0/0, 1/7, 2/13, 3/19, 4/25, 5/28, 6/29, 7/29 c. Compute the demand schedule showing ...

Economics

You own four firms that produce different products. The following table summarizes the conditions in each firm. After calculating the missing numbers for each firm, make one of the following four decisions regarding operations in each firm, and explain why a particular ...

ECONOMICS

A firm uses a single plant with costs C= 160 +16Q +.1Q2 and faces the price equation P= 96 – .4Q. a) Find the firm’s profit-maximizing price and quantity. What is the profit? b) The firm’s production manager claims that the firm’s average cost of production is ...

Economics

A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q. a. Find the firm’s profit-maximizing price and quantity. What is its profit? b. The firm’s production manager claims that the firm’s average cost of production is ...

managerial economics

A firm uses a single plant with costs C= 160 +16Q +.1Q2 and faces the price equation P= 96 – .4Q. a) Find the firm’s profit-maximizing price and quantity. What is the profit? b) The firm’s production manager claims that the firm’s average cost of production is ...

CORRECTED ECONOMICS ?

You own four firms that produce different products. The following table summarizes the conditions in each firm. After calculating the missing numbers for each firm, make one of the following four decisions regarding operations in each firm, and explain why a particular ...

college econ

You own four firms that produce different products. The following table summarizes the conditions in each firm. After calculating the missing numbers for each firm, make one of the following four decisions regarding operations in each firm, and explain why a particular ...

Economy

Use the following information to answer the question. There are three firms in an economy: X,Y,Z. Firm X buys $200 worth of goods from firm Y, and $300 worth of goods from firm Z, and produces 250 units of output at $4 per unit. Firm Y buys $150 worth of goods from firm X, and...

Economics

A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 - Q. Suppose fixed costs rise to $200. What will happen in the market? A.The firm will decrease its output and lower its price. B. The firm ...

economics

5. A market contains a group of identical price-taking firms. Each firm has a marginal cost curve MC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if the price exceeds $20 per unit and will shut down if the price is less than $...

Finance

and produces 200 units of output, which it sells at $5 per unit. Firm B buys $100 worth of goods from firm A and $150 worth of goods from firm C, and produces 300 units of output, which it sells at $7 per unit. Firm C buys $50 worth of goods from firm A and nothing from firm B...

lavin

A firm has the following short-run production function: Q = 100L + 10L2 - 0.7L3 Where Q = quantity of output per week; L = Labor (number of workers) a. When does the law of diminishing returns take effect? b. Calculate the value for Stage I in the production process? c. Assume...

Mathematics in Economy

A firm produces two different kinds A and B of a commodity. The daily cost of producing x units of A and y units of B is C(x,y) = 0.04x2 + 0.01xy + 0.01y2 +4x + 2y +500 Suppose that firm sells all its output at a price per unit of 15 for A and 9 for B. Find the daily ...

Managerial Economics

Supposed that a firm's daily output is Q = 1.5L^0.76 K^0.24 Q = Daily output L = number of workers K = number of machines used per day Price per output = $10 If wages of a worker is $30 a day, how many workers(L) per unit of output should the firm hire? Here's what I did, to ...

managerial economics

The MorTex Company assembles garments entirely by hand even though a textile ma- chine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (i.e., marginal product is constant and ...

eco

suppose that the marginal product of the last worker employed by a firm is 40 units of output per day and the daily wage that the firm must pay is $20 while the marginal product of the last machine rented by the firm is 120 units of out put per day and the daily rental machine...

economics

The graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive industry. The graph on the right shows current industry demand and supply. a. What is the marginal revenue that this perfectly competitive firm will earn on its ...

principals of microeconomics

it says that at an output of 100, the firm uses three units of capital (K) and 7 units of labor (L). In 1 capital is $100 per unit per day and labor is $80 per worker per day. So you have 100x 3= $300 and then you have 7x$80=$560. Add those together and at a daily output of ...

Economics

A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. You may wish to arrive at the answers mathematically, or by...

To: Economyst

Hi there. You helped me with a couple of questions regarding Econ. I appreciate the help but my issue is I don't understand how you calculate the minimum average variable cost or the output that maximizes profit. I do understand that the price is more than the AVC so they ...

Math/Economics

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh...

Math/Economics

Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10. The marginal product of the seventh...

Economics

a firm in a purely competitive industry is currently producing a 1000 unir per day at a total cost of $450. if the firm produced 800 units per day, it total cost will be $300, and it it produced 500 units per day, it total cost will be $275. Requirements: (1) what are the firm...

Economics

Two firms produce the same good and compete against each other in a Cournot market. The market demand for their product is P = 204 - 4Q, and each firm has a constant marginal cost of $12 per unit. MR1 = 204 - 8q1 - 4q2. Let q1 be the output produced by firm i, where i = 1,2. 1...

econmics

The MorTex Company assembles garments entirely by hand even though a textile ma-chine exists that can assemble garments faster than a human can. Workers cost $ 50 per day, and each additional laborer can produce 200 more units per day ( i. e., marginal product is constant and ...

econmics

The MorTex Company assembles garments entirely by hand even though a textile ma-chine exists that can assemble garments faster than a human can. Workers cost $ 50 per day, and each additional laborer can produce 200 more units per day ( i. e., marginal product is constant and ...

managerial economics

The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (i.e., marginal product is constant and ...

managerial economics

The MorTex Company assembles garments entirely by hand even though a textile machine exists that can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (i.e./ marginal product is constant and ...

mangerial econ

The MorTex Company assembles garments entirely by hand even though a textile machine exists which can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (the same for each additional worker). ...

Managerial Economics

The MorTex Company assembles garments entirely by hand even though a textile machine exists which can assemble garments faster than a human can. Workers cost $50 per day, and each additional laborer can produce 200 more units per day (the same for each additional worker). ...

Economics

A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000. 1. To maximize profits in the short-run, the monopolist should: (a) Increase output (b) ...

Economics

A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000. 1. To maximize profits in the short-run, the monopolist should: (a) Increase output (b) ...

managerial economics

Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal constant of $4. Firm B is the Stackelberg leader in this market. (a)State the reaction function for firm ...

Economics

In the short run a firm needs six units of labor to produce eight units of output and ten units of labor to produce nine units of output. If the price of labor is $2 per unit, what is the marginal cost of the ninth unit of output?

Economics

Yeah, so I'm in urgent need of help with this homework. 1. Assume that in a perfectly competitive market, a firm's costs and revenue are: Marginal cost = average variable cost at $20 Marginal cost = average total cost at $30 Marginal cost = average revenue at $25 A) How will ...

Economics

PLEASE PLEASE HELP!!!! 1.WITH THE HELP OF DIAGRAMS,MAKE A DISTIOTION BETWEEN PERFECT COMPETITION AND MONOPOLOY IN THE SHORT AND LONG RUN 2.SUPPOSE A PROFIT MAXING FIRM IS PRODUCING AT AN OUTPUT LEVEL AT WHICH THE PRICE OF ITS PRODUCT IS LESS THAN THE AVERAGE TOTAL COST OF ...

Microeconomics

A. At a product of 55 will this firm produce in the short run? Yes or no explain. If it is preferable to produce what will be the profit maximizing or loss minimizing output? What economic profit or loss will the firm realize per unit of output

Economics - URGENT

Suppose we now care about the long run decisions of a firm that has a production function of the form q = 4L^1/2 + K Suppose w = 1 and r = 0.5 Assume that, at the beginning when w0 = 1 and r = 0.5, the firm chose to produce q0 = 20 units of output. Then, the wage increased to ...

economics

A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages per day. One month ago, they added five workers, and productivity also increased by 50,000 pages ...

Economics - Short run profit maximization

Given the following for perfectly competitive firm that has short-run cost structure Output Marginal Cost 1 $10 2 $5 3 $12 4 $23 5 $40 Total fixed costs are $20 and the market price of the product is $25 per unit. How much output should the profit-maximizing firm produce (if ...

MATH

I need help ASAP. A firm produces its output in two plants, A and B.a. To maximize its profit, the firm should produce the output at which ______ equals ______. It sets the price given by ______. b. It should allocate this output between the two plants so that ______ equals ...

Statistics 12.27

A study has been carried out to compare the United Way contributions made by clerical workers from three corporations. A sample of clerical workers has been randomly selected from each firm, and the dollar amounts of their contributions are as follows. Firm 1 Firm 2 Firm 3 199...

mircoeconomic

Kate’s Katering provides catered meals, and the catered meals industry is perfectly competitive. Kate’s machinery costs $100 per day and is the only fixed input. Her variable cost is com-prised of the wages paid to the cooks and the food ingredients. The variable cost ...

Managerial ECON

Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is $3,600. a. What is marginal cost? b. What is average variable cost...

microeconomics

The marketing division of a firm has measured demand for its product and reports that it is Q = 24 – P, where Q is units and P is price per unit in dollars. The cost is given in the table below. Complete the table and determine the profit-maximizing level of output for this ...

Economics

The cost function for a firm is given by TC = 500 + Q2. The firm sells output in a perfectly competitive market and other firms in the industry sell at a price of $100. a) What price should the manger of this firm put on its product? b) What level of output should be produced ...

economics

perfectly competitive industry. Each firm having identical cost structures. long-run average cost is minimized at an output of 20 units. Minimum average cost is $10 per unit. total market demand is Q=1500-50P. What is the long-run equilibrium price? Total industry output? ...

managerial economics

The cost function for a firm is given by TC = 500 + Q2. The firm sells output in a perfectly competitive market and other firms in the industry sell at a price of $100. a) What price should the manger of this firm put on its product? b) What level of output should be produced ...

quantitative methods II

A firm that produces car components has a fixed costs of $ 40,000 per month and a variable cost of $ 24 per component.it sells its product at a price of $ 44 per component,regardless of the number of units sold. (i)find the break-even level of monthly output. (ii) at what ...

ECONOMICS

Two price setting firms have the same price and marginal revenue functions but face different cost functions. These functions are provided below. P = 165 - 0.025Q MR = 165 - 0.05Q Firm 1: TC = 4,000 + 15Q Firm 2: TC = 3,000 + 22Q a. Assuming that both firms are profit-...

math

fill in the following table, assets required for operation $2000 Case A - firm uses onlyequity financing Case B - firm uses 30% debt with a 10%interest rate and 70% equity Case C - firm uses 50% debt with a 12% interst rate and 50% equity

econ question

2 questions that im stuck on!!! 1. Suppose a firm has a production function Q = 3(squareroot)N, where N is labour. Suppose the wage is 3, and the price of the output 4. (a) Write the Firm profits (b) Calculate the firm optimal labour choice when the wage is 3. 2. 2. Suppose a ...

Economics

Consider the problem of a firm that needs to decide how much output, denoted by x, to sell. The marginal revenue function of the firm is given by 10−x. It's marginal cost function is goven by x. In addition, the firm faces a legal constrain: it is allowed to sell a ...

managerial economics

At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firm's plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami plant should continue to operate, at least until a...

managerial economics

At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firm's plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami plant should continue to operate, at least until a...

economics - monopoly/monopsony

just a quick qusetion....if a firm is both a monopoly and a monopsony. How would the profit maximizing wage and lvl of labour in the short run be determined for this firm Use the profit maximizing principals. Regardless of the existing market, a firm will hire until the value ...

economics

You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the...

Help-Econ

Okay, this is due Tuesday. I'm woking on it but if anyone can help that would be great! Suppose firm A opeates in a perfectly competitive market. The price that currently prevails in the market is $1,000. Firm A's marginal cost is 20Q, where Q is output. Thus, as output ...

economics

Q AC MC 1 4 12 2 8 20 3 12 28 4 16 36 5 20 44 6 24 52 7 28 60 8 32 68 9 36 76 suppose that there are 70 firms in operating in the industry. using the MC curve, find out how much output in total is delivered to the market at each price (you only need to consider prices equal to...

economics

At a recent board meeting, the president and CEO got into a heated argument about whether to shut down the firm’s plant in Miami. The Miami plant currently loses $60,000 monthly. The president of the firm argued that the Miami plant should continue to operate, at least until...

microeconomics

If a firm holds a pure monopoly in the market and is able to sell 5 units of output at $4.00 per unit and 6 units of output at $3,90 per unit, it will produce and sell the sixth unit if its marginal cost is 4.00 or less 3.40 or less 3.90 or less

economics question!!

Suppose a firm is both a monopoly and a monopsony. How would this firm choose the quantity of labour of labour to employ? what wage would this firm pay? can someone explain this question to me!! im stuck! I gave this question a brief answer earlier. Let me elaborate. Always ...

statistics

12.27 A study has been carried out to compare the United Way contributions made by clerical workers from three local corporations. A sample of clerical workers has been randomly selected from each firm, and the dollar amounts of their contributions are as follows. (Use data ...

Cost accounting

Gary corporation has developed the following flexible budget formula for monthly overhead: for output of les than 200,000 units: $36,600 + $80 (units) for output of 200,000 units or more: $43,000+$80 (units), How much overhead should Gary expect if the firm plans to produce ...

eco

if the marginal product of capital of a firm is 120unit of output, rental price of machine is $30. and marginal product of labor is 40units of output, daily wages is $20. 1)why is this firm not maximizing output or minimizing cost in long run?? 2)how can the firm max. output ...

economics

A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be a. at the minimum point of the marginal cost curve b. less than the (total) revenue-maximizing quantity c. equal to the (total) revenue-maximizing quantity d. in the unit elastic ...

Advanced MicroEconomics

In a competitive market, there are two groups of firms. For every firm in group A, the long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 20 and output is 4. There is an unlimited number of firms in group A. Every firm in group B has a special ...

Advanced MicroEconomics

In a competitive market, there are two groups of firms. For every firm in group A, the long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 20 and output is 4. There is an unlimited number of firms in group A. Every firm in group B has a special ...

economics

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit? b. what is the marginal cost? c. what is its average variable cost? d. is the ...

Math OPTIMIZATION

A plastics firm has received an order from the city recreation department to manufacture 9,000 special Styrofoam kickboards for its summer swimming program. The firm owns 10 machines, each of which can produce 30 kickboards an hour. The cost of setting up the machines to ...

microeconomics

You are given the following information about the costs of a perfectly competitive firm. QuantityTFC TVC 0 45 0 1 45 20 2 45 35 3 45 45 4 45 75 5 45 120 6 45 180 You are hired to determine the profit-maximizing quantity of the firm for different market prices. Complete the ...

Microeconomics

A monopoly firm is faced with the following demand function P = 26 – 0.5Q. The Marginal Cost function for the firm is given by 6 + 6Q and the total fixed cost is 4. Determine a) The profit maximizing output. b) The level of supernormal profit if any. c) The output level at ...

Economics

A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units . The minimum average cost is $10 per unit. Total market demand is given ...

Economics

you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If the firm is profit maximizing, is the firm in a long-run ...

Microeconomics

LTC=2q-2q^2+q^3 Demand p=100-q Determine the long run equilibrium Price Representative firm's output(q) Industry output q and number of firm's in the industry

Microeconomics

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and ficed costs of $200. What are the firm's profit, marginal cost, and average varible cost respectively?

College microeconomics

Need some help with these questions....Thanks in advanced. All profit-maximizing firms hire inputs up to the point where: A) MRP = W B) MR = MC C) MP = W D) MFC = MRP E) MFR = MRC 4) A firm’s marginal revenue product of labor curve A) is steeper than its demand curve for ...

Economics

A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units . The minimum average cost is $10 per unit. Total market demand is given ...

Microeconomics - Oligopoly

Two firms decide to form a cartel and collude in a way that maximizes industry profits. Each firm has zero production costs and each firm is given a positive output quota by the cartel. Which of the following statement(s) are NOT true. (a) Each firm would want to produce more ...

managerial eccon

Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600. what is the averge variable cost?

econ

1. Consider a pure monopolist with short-run total cost function given by STC = 1000 +200 Q + 12.5 Q2. Suppose also that this firm faces an inverse market demand function given by P = 800 – 20 Q. a. How much should this firm produce and what price should it charge in order ...

economics

Should the manager of EverKleen continue to operate or should the firm shut down

Econ

This is due Thursday. We are studying monopolies, and the question is; Firm X is a monoply firm. MR and MC for Firm X are as follow: MR=5,110-10Q, MC=10+10Q, where Q is output. a) Calculate Firm X's profit-maximizing output. I think this is Q=225 b) If Firm X's price is $60 ...

microeconomic

a. Calculate the total cost, the average variable cost, the aver-age total cost, and the marginal cost for each quantity of output. b. What is the break-even price? What is the shut-down price? c. Suppose that the price at which Kate can sell catered meals is $21 per meal. In ...

Microecnomics

A firm is a monopolist in the production of a fuel sensor system. It faces monthly market demand that varies according to the equatioin Q=310-0.25P, where P is the price per system in dollars. The firm earns Marginal revenue accordind to the equation MR=1240-8Q & incurs ...

economics (micro)

2. In the table below, assume a monopsonist has the marginal-revenue-product schedule for a particular type of labor given in columns 1 and 2 and that the supply schedule for labor is that given in columns 1 and 3. (1) (2) (3) (4) (5) Number of MRP Wage Total Marginal labor ...

Economics

1) Lowering the price by 10%. What is the break-even level of output? The company produces specialized glass units and is concerned that, as the market leader, they should be able to make higher profits than they currently are. The firm’s costs are as follows; overheads ‘d...

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