Economic Analysis History of Timberland The birth of "Timberland" begins with Nathan Swartz‚ a young boot making apprentice stitcher ’ in 1918. At ten years of age the owner of the Abington Shoe Company took a chance and hired a much-needed young helper to learn the craft of boot making. Nathan ’s job responsibilities included stitching seams‚ cutting leather‚ attaching soles and perfecting the art of boot making. Thrity-four years later‚ Nathan furthered his interest in boot making by purchasing
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of the inputs‚ output is given by: Q =3L½. A. (7 pts.) Find the equation for minimized total cost in the long run‚ C(Q). (Hint: The standard rule for long run cost minimization that inputs should be employed so that the ratios of each input’s marginal product to its cost are equalized is not applicable here‚ because that rule applies when inputs can be substituted. Cost minimization is simple though; think about it.) Since the two inputs cannot be substituted‚ even if MPL/w does not equal
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Sales – Variable cost = Fixed costs. OR Contribution = Fixed costs. Break-even analysis Break-even analysis is an analytical technique that is used to determine the probable profit at any level of production. It is basically an extension of marginal costing. Break-even chart -------------------------- Advantages of Break-even analysis 1. Profit planning 2. Product planning 3. Activity Planning 4. Lease Decisions 5. Make or buy decisions 6. Capital profit decisions 7
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profits? (b) Graph the marginal revenue‚ marginal cost‚ and demand curves. (a) Step 1. Derive the MR and MC functions. P 130 – 2Q TR=P*Q=(130 – 2Q)Q=130Q – 2Q2 MR=dTR/dQ=130 – 4Q MC= dTC/dQ=10 Step 2. Set MR=MC and solve for P*‚ Q*‚ and π. MR=MC 130 – 4Q=10 4Q=120 Q*=30 P*=130 – 2Q=130 – 2*30=130-60=70 Π=TR-TC=P*Q-TC=70*30-(350 10*30)=2100-650=1450 (b) Deadweight loss is equal to area abc. 3. If a monopoly firm sells a product with price $100‚ and marginal cost of $20‚ what is the
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Question 1 0 out of 1 points Root beer Candy bars Quantity Total Marginal Quantity Total Marginal utility utility utility utility 0 0 0 0 0 0 1 60 60 1 80 80 2 110 50 2 150 70 3 150 40 3 200 50 4 180 30 4 230 30 5 200 20 5 240 10 Reference: Ref 6-8 (Table) In the table‚ the total utility from consuming three root beers and two candy bars is: Selected Answer: 310 utils. Correct Answer: 300 utils. Question
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IGNOU MBA MS - 04 Solved Assignment 2011 ------------------------------------------------- Course Code : MS - 04 ------------------------------------------------- Course Title : Accounting and Finance for Managers ------------------------------------------------- Assignment Code : MS-04/SEM - I /2011 ------------------------------------------------- Coverage : All Blocks Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1. Following
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1. Sally spends her afternoon at the art gallery‚ paying $5 for her bus fares and $11 for food and drinks rather than spending an equal amount of money to go to a movie and have a similar meal at a similar price. The opportunity cost of going to the art gallery a. b. c. d. e. is less than the opportunity cost of going to the movies. equals $5 because she would have had a meal anyway. is the money she spent. is the movie she didn’t see.* is zero‚ if there is no fee to enter the
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Identify the shutdown point‚ the breakeven point and the firm’s shortrun supply curve. The shutdown point is the point where P = the minimum AVC. The breakeven point is the point where P = the minimum ATC. The firm’s short-run supply curve is the marginal cost curve about the shutdown point which as stated is the point where P = the minimum AVC. 5) Draw graphs showing a perfectly competitive firm‚ and industry in longrun equilibrium. The above graph represents perfectly competitive firm and industry
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also profit. The formula for this is MB = MC. As seen in the table completed above‚ after applying the formula then net benefit is maximized where Q = 106. b. What is the relation between marginal benefit and marginal cost at this level of the control variable? Where marginal benefit is equal to marginal cost (MB = MC)‚ net benefit is maximized 2. Arcadia recently instituted an in-house recycling program. The benefits of this program include not only the benefits to the environment of recycling
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variable in the long run. The Production Function and the Law of Diminishing Marginal Returns The production function refers to the physical relationship between the inputs or resources of a firm and their output of goods and services at a given period of time‚ ceteris paribus. The production function is dependent on different time frames. Firms can produce for a brief or lengthy period of time. Law of Diminishing Marginal Returns All other things remaining constant‚ if only one input is increased
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