Reference no: EM131237896
Market Forms
The following questions address some of the price and output decisions faced by firms other than those found in perfect competition. Some numbers may be rounded.
Table 1
|
Output
|
Average Fixed cost
|
Average Variable Cost
|
Average Total Cost
|
Marginal Cost
|
Price
|
Total Revenue
|
Marginal Revenue
|
|
0
|
|
|
|
|
$ 345.00
|
|
|
|
1
|
$ 180.00
|
$ 135.00
|
$ 315.00
|
|
$ 300.00
|
|
|
|
2
|
$ 90.00
|
$ 127.50
|
$ 217.50
|
|
$ 249.00
|
|
|
|
3
|
$ 60.00
|
$ 120.00
|
$ 180.00
|
|
$ 213.00
|
|
|
|
4
|
$ 45.00
|
$ 112.50
|
$ 157.50
|
|
$ 189.00
|
|
|
|
5
|
$ 36.00
|
$ 111.00
|
$ 147.00
|
|
$ 165.00
|
|
|
|
6
|
$ 30.00
|
$ 112.50
|
$ 142.50
|
|
$ 144.00
|
|
|
|
7
|
$ 25.71
|
$ 115.70
|
$ 141.41
|
|
$ 126.00
|
|
|
|
8
|
$ 22.50
|
$ 121.90
|
$ 144.40
|
|
$ 111.00
|
|
|
|
9
|
$ 20.00
|
$ 130.00
|
$ 150.00
|
|
$ 99.00
|
|
|
|
10
|
$ 18.00
|
$ 139.50
|
$ 157.50
|
|
$ 87.00
|
|
|
Questions:
1. Complete Table 1. Summarize your calculations and use Microsoft Excel.
2. Using Excel, draw one graph showing average fixed costs, average variable costs, average total costs, marginal revenue, and marginal costs.
3. Using the data in the table and on your graph, what is the profit maximizing, or loss minimizing level of output? Explain and justify your answers.
4. What is a normal profit? What is an economic profit? Explain your answer using examples. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.
5. Given the data in the table and the graph, how could you determine or identify the optimal plant size?
6. What is the difference between explicit and implicit cost? Explain your answers.
7. How would we determine if a cost is a fixed cost or a variable cost?
Present your analysis in Microsoft Excel format. Enter non-numerical responses in the same worksheet using textboxes.
|
Building of core competencies and capabilities
: Question 1: Explain why the team effort is so important in the building of core competencies and capabilities within an organization. Question 2: What are some of the key factors a firm should consider when deciding whether or not to outsource func..
|
|
How far would the planet be from the sun
: Asteroids are believed to be material that never collected into a planet. The asteroid Ceres has a period of 4.6 years. Assuming Ceres to be at the center of the planet if it had formed, how far would the planet be from the Sun?
|
|
What volatility smile is likely to be observed
: What volatility smile is likely to be observed when: - Both tails of the stock price distribution are less heavy than those of the lognormal distribution?
|
|
List jovian planets in order of increasing distance from sun
: Determine what the period of revolution of the Earth would be if its distance from the Sun were 4 AU rather than 1 AU. Assume that the mass of the Sun remains the same. List the Jovian planets in order of increasing distance from the Sun.
|
|
What is a normal profit and what is an economic profit
: What is a normal profit? What is an economic profit? Explain your answer using examples. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.
|
|
Describe the psychological consequences
: What, if any, intervention would you recommend to a parent whose little girl or boy expresses the desire to engage in behaviors typical of the opposite sex? If you do not believe intervention is necessary, explain why.
|
|
Important in career advancement
: (1) In 300-400 words explain how socialization and mentoring can both help minimize resistance to change. Why is this important in career advancement. Give an example. Cite a minimum of 4 peer-reviewed source(s)
|
|
What the period of revolution of the earth would be
: Calculate the length R of the semimajor axis of a planet whose period is 165 years. Determine what the period of revolution of the Earth would be if its distance from the Sun were 2 AU rather than 1 AU. Assume that the mass of the Sun remains the ..
|
|
What volatility smile is observed for equities
: What volatility smile is likely to be caused by jumps in the underlying asset price? Is the pattern likely to be more pronounced for a 2-year option than for a 3-month option?
|