User Account

All Pages

Identify the range of output exhibiting increasing returns

Assignment Help Business Economics
Reference no: EM133065615

You have collected the following data on output and total variable costs:

Q

TVC ($)

10

24,850

20

40,800

30

49,950

40

54,400

50

56,250

60

57,600

70

60,550

80

67,200

90

79,650

100

100,000
  1. Identify the range of output exhibiting increasing returns (increasing MP), and the range exhibiting diminishing returns (decreasing MP).
  2. Current fixed costs for the company equal $11,700. Draw two graphs, both with Q on the horizontal axis: one graph shows TVC and TC, and the other shows AVC, ATC, and MC.
  3. Suppose that the government imposes a $6,750 property tax hike on all businesses; how will that affect your two graphs; i.e., which cost curves will be affected and how?
  4. Suppose instead that the government considers your production process to be polluting, and imposes a $90 tax per unit produced (replacing the property tax in the previous question). How does this tax increase compare to the property tax increase, in terms of the effect on your company's cost curves?
  5. Your boss says "either of these taxes is going to force us to change our production levels." Given what you know about optimization analysis, how would you respond?

Reference no: EM133065615

Questions Cloud

Perspective of selected sport organization : The culminating experience of this course is to evaluate globalization trends from the perspective of a selected sport organization.
Describe kuznets inverted u hypothesis : a. Describe Kuznets's inverted 'U' hypothesis. Discuss the conceptual merits and limitations of this hypothesis for contemporary developing countries.
Determine the amount the exporter will receive : Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A
Compute the rent expense reported in faith company profit : Compute the rent expense reported in Faith Company's profit or loss for the years ended December 31, 2020 and December 31, 2021
Identify the range of output exhibiting increasing returns : You have collected the following data on output and total variable costs:
Source Methodology : Source Identification: Did you use external or internal resources? Source Methodology-Why did you decide to use the sources you selected
Cultural intelligence for leaders : In Chapter 7 of your textbook, Cultural Intelligence for Leaders, please read Case Study 9: Faith and Health. Please be sure to particularly address the followi
Conduct a typical foreign commerce trade : Discuss some of the reasons why international trade is more difficult and risky from the exporter's perspective than is domestic trade
Starting a business during a recession : What are common mistakes and issues when starting a business during a recession? Provide examples and references.

Reviews

Write a Review

Business Economics Questions & Answers

  Organization of the federal open market committee

Discuss your thoughts on the organization of the Federal Open Market Committee (FOMC). Why is the New York Federal Reserve president always on the FOMC? Does the committee meet often enough? Should its meetings be closed to the public? Have its recen..

  Variable technology for reducing that pollution

Think of an industry that pollutes the water and has access to variable technology for reducing that pollution. Explain the impact of each of the following, other things constant, on the optimal level of water quality:

  Behavioural economics

Use of the term "behavioural economics" has been criticized on two accounts: redundancyand ambiguity. Briefly explain these two criticisms and determine whether they have anybearing on the merit of this line of economic study.

  Explain to me which shifter variable is affected

Please explain to me which shifter variable is affected, which curve shifts, and determine the effect upon equilibrium price and quantity sold when the price

  Brad works in the labor market

If Brad works in the labor market, he can earn a wage of $500 per hour, while Angelina can earn $600 per hour. Considering comparative advantage, which of the two should specialize in the labor market? Explain.

  Buy a piece of vacantland

You can buy a piece of vacantland for $30,000 cash. You plan to hold it for 15 years and then sell it at a profit. During this period

  Differences in job continuity and rational decisions

Wage differences between men and women do not reflect discrimination but rather differences in job continuity and rational decisions with respect to education and on-the-job training.”

  What are the market effects of a deadweight loss

One of the problems in a competitive market environment is deadweight losses.

  Make profit next year without eliminating any employees

What would be an optimal decision for the firm, if it would like to make profit next year without eliminating any employees?

  What effect will each of the have on the supply of auto tire

Part 1. What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?

  Concerned about the lack of competition

You are working as a consultant for the government. The government wants to impose a tax, levied on the monopolist, because they are concerned about the lack of competition. Does this policy lead to a more efficient outcome in the market?

  Amortized over a shorter period of time

Now, let's think about a loan that is amortized over a shorter period of time: a car loan. You are trying to decide between buying a new or used car.

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd