Reference no: EM131732385
1. Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results. Total fixed cost TFC) at Straker Industries is $1,030.
Adjusted R Square 0.815
Coefficients Standard Error t Stat P-value
Intercept 34.62 1.99 17.40 0.0033
Q -3.65 0.44 -8.36 0.0000
Q^2 0.18 0.02 8.92 0.0000
a. What level of output (Q) is associated with the minimum AVC? What is the value of AVC at this minimum?
b. Determine equations for ATC, TC, and SMC. Graph one scatterplot of Q vs. TC, and another scatterplot of Q vs. ATC, AVC, and SMC.
c. When output is 14, how much is TC, AVC, ATC, and SMC?
d. At what amount of output does labor change from exhibiting increasing returns to decreasing returns?
2. Coffee shops in a large city would appear to be examples of competitive markets: there are numerous relatively small sellers, each seller is a price-taker, and the products are quite similar.
a. How could you argue that this market is not competitive?
b. Could each coffee shop face a demand curve that is not perfectly elastic?
c. How profitable do you expect coffee shops to be in the long run?
What is the projected net income
: Calculating Projected Net Income. A proposed new investment has projected sales of $645,000. Variable costs are 40 percent of sales, and fixed costs.
|
Equilibrium means the quantity supplied
: Equilibrium means the quantity supplied equals quantity demanded. What else does equilibrium mean?
|
What are the key issues presented in this video
: What seems to be motivating this behavior? (greed, altruism, politics, laws, policies, behavior. etc.).
|
Calculate the annual depreciation allowances
: Calculating Depreciation. A piece of newly purchased industrial equipment costs $715,000 and is classified as seven-year property under MACRS.
|
Average variable cost function of the form
: Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following results.
|
Define a drug toxicity of nitroglycerin
: Which of the following is not directly related to a drug toxicity of Nitroglycerin
|
Specify number of degrees of freedom for each model
: Let W, X, Y, and Z be classification variables with 2, 3, 4, and 3 categories respectively. Specify number of degrees of freedom for each model
|
What is the aftertax cash flow from the sale of the asset
: Calculating Salvage Value. Consider an asset that costs $545,000 and is depreciated straight-line to zero over its eight-year tax life.
|
Calculate the present value
: (a) Calculate the present value of going to school and not going to school assuming his discount rate is 10%.
|