Marginal revenue and monopoly

The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist. Below the graph is the market demand curve. TABLE Showing Market Demand Price Quantity Total Revenue Average Revenue 18 10 ------------ -----------------...

Labor and Capital, Costs

5) A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $6 per hour and capital is rented at $12 per hour. If the marginal product of labor is 50 units of output per hour and the marginal product of capital is 75 units of output per hour, is th...

Quantitative Excel Graphing Exercise: Drespie Corn Products

You are the new owner of Drespie Corn Products and Refineries. You are interested in your company's cost and revenue relationships as well as its future pricing strategies. Accordingly, you have developed the following relationships, which you believe to be accurate on the basis of historical data: ...

Managerial Economics: Vanda-Laye oven mittens

I need some help with this assignment, specifically with the equation portion done in excel. I would greatly appreciate the help. You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management...

Market Structure and Related Concepts for Apple, Inc.

Describe the dominant characteristics of the industry in which APPLE operates, addressing the following questions: -Who are your main competitors? -Are they significant barriers to entry? -What is your company's market share? -What is the market share of your main competitors? -What is the fo...

Relationship between elasticity and total revenue

You are the Chief Financial Officer of Heavy Buds and are faced with the task of raising sales revenue per the units sold by your firm. Heavy Buds sold 120 million packs of beer annually at $3 per pack. The Chief Executive Officer suggested that you could raise an additional $120 million in annual...

Free Enterprise

1. In reading "Rewarding Work: How to Restore Participating and Self-Support to Free Enterprise" a plan to help the working poor speaks about different options. What are some market incentives that includes one of the ten principles of economics that works welfare programs? Is the Phelps' plan an...

Delta Airlines - Acquisition of Refinery

Read the excerpt below from an article titled "Delta buys refinery, becoming first airline to make own fuel" (Reuters, 5/1/2012). The more context­ specific your answers are the better. a. What might be the value­ generating benefits of this vertical integration? What transaction costs might b...

Risk Averse Investment Decision

Q1. Consider a market characterized by the following inverse demand and supply functions: P =10-2Q and P = 2 + 2Q. a. Draw the Demand and Supply curves. b. Compute the surplus received by consumers and producers in a perfectly competitive equilibrium. Q2. Recently the National Association of...

Incentive Conflict and Organizational Architecture

Identify an incentive conflict in your firm, or one you have read about, that reduced firm value. As part of your answer discuss whether or not one or more of the legs of the organizational stool was unbalanced, and if so, how that contributed to the conflict.

Macroeconomic Aggregates

1) Explain the difference between the short run and the long run as it relates to the firm's production function. Why is this distinction important to a firm's manager? 2) Explain why a firm maximizes its profits by producing the level of output at which marginal revenue equals marginal costs. ...

Sotheby's and Christie's and Cover Gifts

Please reference both attachments. Please provide the responses to A, B, C & D in regards to the first attachment in a Word doc only. Please provide a one paragraph response for each. Please provide the responses to Question 1 in regards to the second attachment in a Word doc only. Please prov...

The difference between economic profit and accounting profit

Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm - one offer was for $125,000 per year, and the other was for $105,000. However, she turned both jobs down to continue a painting career. If Jaynet sells 35 paint...

Wages, Unequal Pay, and Movie Pricing

In regards to the below explanation, why are wages decreasing and employment increasing in Great Britain? Please provide your opinion. The simplest explanation is that supply is increasing: as supply increases output increases real prices fall and output increases. The Financial Times shows ...

Several Economics Questions

Please reference the attachment. Please provide the response via attachment only. 1. With regards to the below explanation, is RG III a sunk cost? Please provide a substantial one-two paragraph response. The moment the owner Daniel Snyder signed off on trading those draft picks to the St. Loui...

Budget and Marginal Rate of Substitution

Upscale hotels in the United States recently cut their prices by 25% in an effort to bolster dwindling occupancy rates among business travelers. A survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic ...

Demands and Costs of Perfect Competition

See attachment for graph. The top graph summarizes the demand and costs for a firm that operates in a perfectly competitive market. a. What level of output should this firm produce in the short run? b. What price should this firm charge in the short run? c. What is the firm's total cost at t...

Competitive Industry and Perfect Competition

1. If an industry is perfectly competitive then a single producer is a price taker? Why? Explain with examples. 2. What is the supply curve of a perfectly competitive firm? Is it different from that of the market supply curve? Explain with examples

Market Power and Monopoly

1. An industry consists of three firms with sales of $300,000, $700,000 and $250,000. a. Calculate the Herfindahl-Hirschman index (HHI). SHOW ALL WORK b. Calculate the four-firm concentration ratio (C4). SHOW ALL WORK c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the tex...

Firms/markets, Labor and Capital

see attachment: Instructions: 1. Answer all questions and show work 2. Do not change the question format. 1. The own-price elasticity of demand for apples is -1.2. If the price of apples falls by 5%, what will happen to the quantity of apples demanded? A. It will increase 5%. B. It wil...

Economics: Cost Analysis

1. An economist estimated that he cost function of single-prodcut firm is C(Q) = 100 + 20Q + 15Q2 + 10Q3 Based on this information, determine: a. The fixed cost of producing 10 units of output b. The variable cost of producing 10 units of output c. The total cost of producing 10 units of ou...

Product maximization v. Cost minimization

Cost minimization for a given level of production is equivalent or identical the concept of product maximization for a given cost level. True of False. Explain. Please offer examples and the use of graphs where necessary.

Managerial Economics and Opportunity Set

A recent newspaper circular advertised the following special on tires: "Buy three, get the fourth tire for free—limit one free tire per customer." If a consumer has $360 to spend on tires and other goods and each tire usually sells for $40, how does this deal impact the consumer's opportunity set...

Wages in a highly competitive market

A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $ 25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to ...

Consumer Spending and Consumption

A consumer must spend all of her income on two goods (X and Y). In each of the following scenario, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is a normal good and good Y is an inferior good. a. Income doubles b. Income quadruples and al...