Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week. Thefirm's additional cost of hiring an extra hour of labor isabout $20 per hour (wage plus fringe benefits). The firm faces thefixed selling price P $40.
a. How much labor should the firm employ? What is its resultingoutput and profit?
b. Over the next two years, labor costs are expected to beunchanged, but dress prices are expected to increase to $50. Whateffect will this have on the firm's optimal output? Explain.Suppose instead that inflation is expected to increase thefirm's labor cost and output price by identical (percentage)amounts. What effect would this have on the firm'soutput?
c. Finally, suppose once again that MCL $20 and P $50 but thatlabor productivity (i.e., output per labor hour) is expected toincrease by 25 percent over the next five years. What effect wouldthis have on the firm's optimal output? Explain.
One question that arose during the meeting was about how the firm's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess the profit potential using marginal analysis.
The marginal cost (which equals the average variable cost) of serving an additional patron, either senior or everyone else, is equal to $4. Fixed costs are equal to $1000.Ps = 80 - Qs Pe = 100 - 2Qe Show that MRe = MRs = MC
What is meant by the term, path dependency and discuss how path dependency has effected the development of two major Australian economic institutions.
Suppose that a bank currently has assets of $24,000 in reserves and $176,000 in loans and liabilities of $200,000 in deposits. If the required reserve ratio is 10%, what are the bank's required and excess reserves
A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows: A B C Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life in years 10..
The equation for a demand curve has been estimated to be: Q=100-10P+0.5Y Where Q is quantity, P is price and Y is income. Assume that P=7 and Y=50. a.) At a price 7, what is the price elasticity b.) At an income level of 50, what is the income elasti..
You are considering dividing an investment portfolio between a risk-free investment with a return equal to 5% and a risky investment with a mean return of 12% and a variance σ2=30. Your coefficient of risk aversion is 0.4
There are three goods in the consumer basket. The fixed quantities are these goods, which the consumer buys, are as follows: Food=60 units, Movies=40 units, and Clothing=90 units. Over a four-year period, the prices of these goods, PF, PM
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $3 per bag no matter how many bags are produced.
Bob and Bill are college students. They are trying to decide what to do over the next summer. Bob's father has suggested that they both come and work at his plastics manufacturing company where each will earn $3,600 over the summer.
Suppose that as an owner of a federally insured S&L in the 1980s the price of real estate falls, and most of your loans go into default. In fact, so many loans go into default that the net worth of the S&L is a negative($5 million). Federal regula..
The market demand curve will thus take the form P=a-bQ and the market supply curve will take the form P=cQ+d suppose that some market consists of 100 buyers and 10 sellers. Each buyer has an identical individual demand curve, P=300-3Q
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd