EPGP-04A-068 Monopoly 1. A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price‚ measured in rupees per unit. The firm’s cost function is given by C = 60Q + 25‚000. Assume that the firm maximizes profits. What is the level of production‚ price‚ and total profit per week? Ans1. Level of optimal production is obtained by setting Marginal Revenue equal to Marginal Cost. If Demand function is Linear then‚ P=a-bq Revenue is
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from internal economies come from; specialization‚ indivisibility‚ increased dimensions‚ the principle of multiples‚ by-products‚ linked processes‚ and stock economies. Specialisation is employing specialists to undertake particular tasks in the production process to make it more efficient. Both small and large firms alike would benefit from this expertise‚ but the difference to small firms may be greater. Indivisibility occurs because of modern technology that often means that machines can only
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accumulation procedures; otherwise they are unable to visualize how costs are actually collected. The details‚ however‚ are appropriately left for an advanced course. The principal pedagogical problem here is how to get across the idea of equivalent production in process costing. Some introductory texts omit this idea‚ but this strikes us as dangerous because some student is almost sure to ask what happens in a process cost system if not all the units are completed by the end of the period. If the answer
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An operation increases its production level and observes that the cost of producing each unit decreases. This is an example of: Economies of scale. Organizations have: internal and external supply chains. The center of gravity method for location choice is often used to minimize: shipping costs. Which of the following are common reasons a firm might expand into new countries?: To operate under less restrictive regulations and to improve access to foreign markets. . Compared to service operations
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Question One Based on the information presented in the scenario/case study discuss Albatross Anchor’s Competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost: Cost or Production $8 per pound for mushroom/bell anchors $11 per pound on for snag hook anchor Materials Labor: wages‚ benefits‚ workmen comp Tools: proper equipment Facilities: taxes‚ insurance‚ and the utilities b) Economies of Scale: The firm
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buyers | | | Threat of substitutes | | | Rivalry within the company’s sales team | 5 points Question 5 1. ------------------------------------------------- ------------------------------------------------- When assessing your production line for export readiness‚
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bargaining power with product sellers. Economies of scale are the cost savings associated with a larger production scale (size) of certain product‚ the larger the production scale‚ the lower the per unit product cost. Manufacturing 1‚000 laptops is cheaper than manufacturing 100 laptops. This means that economies of scale arise on the supply side of the market‚ on the savings from a larger production batch with the same fixed resources‚ on gains from improved bargaining power with suppliers. Local businesses
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Chapter 04 Demand 10. The long-run price elasticity of demand for a product is generally _________ the short-run elasticity for the same product. A. lower than B. equal to C. higher than D. not comparable to 11. Assume the demand function for skin care products is given by Q = 1‚000 – 20 P + 5I. If P=$25 and I=$1‚000 currently‚ then: A. skin care products are a normal good. B. the elasticity of demand is equal to 11. C. skin care products are inferior. D. The price is too high
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down any plants any plants‚ its weekly costs will change‚ as fixed costs are lower for a non-operating plant. Table 1 shows production costs at each plant‚ both variable at regular time and overtime‚ and fixed when operating and shut down. Table 2 shows distribution costs from each plant to each distribution center. Table 1 Andrew-Carter‚ Inc.‚ Variable Costs and ixed Production Costs per Week Fixed Cost Plant Variable Cost Operating Not Operating Plant 1‚ regular time $2.80 $14‚000 $6‚000
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QRB Working with Numbers and Formulas Order of Operations McDonnell & Brue (Economics) Question 12 (p 129) in Ch 7 The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP for each decade jump. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Year Nominal GDP‚ Billions Price Index 1996 = 100 Real GDP‚ Billions Inflating or Deflating GDP? 1960 $527.4 22.19 $2‚376.75 Inflating
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