Reference no: EM131126691
Assignment: 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. If you want to learn how to use Microsoft Excel to create curves, refer to the Microsoft Excel tutorials.
|
What conclusion can you draw from your graphical analysis
: Use your knowledge of economic principles to discuss how the market premise operates under the "polluter-pays principle."
|
|
What role did religion play in history of ethiopian dynasty
: What role did religion play in the history of the Ethiopian dynasty? You might address one or more of these questions: How did the religious beliefs influence the success or failure of the governments there?
|
|
List the types of fall protection systems
: List the types of fall protection systems. List the types of fall protection referenced in the readings. Summarize the differences and similarities between a Warning Line and a Controlled Access Zone. Identify some of the difficulties in establishing..
|
|
What price for heart surgery must the hospital charge
: (Assume that the hospital would match its rival's price in the cataract market if the rival were to respond to this bundling arrangement by cutting its cataract price.)
|
|
What is profit maximizing or loss minimizing level of output
: Using Excel, draw one graph showing average fixed costs, average variable costs, average total costs, marginal revenue, and marginal costs. Using the data in the table and on your graph, what is the profit maximizing, or loss minimizing level of o..
|
|
Where is the kink in the demand curve
: what is the current selling price at that kink and how much output will be demanded?
|
|
How does buyer effectively exercise this option
: In the case Scotwood Industries, Inc. v. Frank Miller & Sons, Inc., 435 F.Supp.2d 1160 (D.Kan. 2006)]. How does a buyer effectively exercise this option? Do the facts in this case support this theory as a ground for Miller to recover damages? Why or ..
|
|
Using managerial accounting information
: The following situations describe decision scenarios that could use managerial accounting information: The manager of Barney's BBQ wishes to determine the price to charge for various lunch plates.
|
|
Find the optimal run size-number of runs per year
: The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are ..
|