Discussion Case #2 - Craft Beer

The oversupply of bananas in Mexico, which is recorded in the months of September and October, causes prices to farmers to be reduced by up to 50 percent below the cost of production, said Adrián Prats, president of the banana product system at the national. "It is a critical situation, we are selling the fruit below the cost of production, which is when it really impacts the producer, since he has to continue maintaining his plantations healthy and vigorous and that costs. We have to invest in it, even though the price is not giving to pay, even, the costs", explained Prats. The above causes: a. By decreasing the price of bananas, marginal income decreases and therefore, production must be increased (T/F) _________ b. By lowering the price, the company will have to take care of its costs. To avoid leaving the market, the producer must ensure that, at least, the average variable costs (T/F) _______ are covered c. It is recommended that a banana producer who invests in keeping his…

Question 3 of 20 Total revenue is best described as the change in revenue when one additional worker is hired. variable cost per unit times the number of units sold. price per unit times the number of units sold. what economists assume firms seek to maximize. Suppose that the price of a coffee table is $85/table. Jim-Bob will sell 100 coffee tables at the flea market this month. It costs Jim-Bob $50 in materials and supplies to make each coffee table and $150/month to rent space at the flea market. These are all of Jim-Bob's costs. How much will Jim-Bob make in total revenue this month? Do not round your answer. $ How much profit will Jim-Bob make at the flea market this month? Do not round your answer. $

Problem 18-01 (algo) Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre. Instructions: Enter your answers as a whole number. a. If the price at which wheat can be sold is $7 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most that any farmer would pay to rent your 20 acres? $ b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $8 per bushel? LA

Remembering the learning activity in Unit 3, the Gondwanaland chairman of production reported that the gosum berry growers could meet a demand of 700 barrels of gosum berries per month at a price of $70 per barrel. Then the growers were plagued with a gosum berry bug infestation that reduced output, causing production to fall to only 600 barrels. This resulted in a price increase to $84 per barrel. The following table shows the chairman’s report: Month Monthly barrels of gosum berries demanded Price per barrel June 700 $70 July 600 $84   Using the midpoint method, show your work and calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means?     Complete the table below by calculating what the monthly total revenue is for June, what the monthly total revenue is for July, and the change in total monthly revenue for these two months. How have these numbers changed? (Enter your response…

ECON 4333-001 (online) Spring 2020 Homework Assignment #2-Revised     MR This question is based on the figure above, which describes cost and demand conditions in the widget industry. Assume that costs functions to not vary according to market structure (competition vs. monopoly, for example). Complete the following table. All variables should be expressed in dollars. (Hint: use the Cowling and Mueller method for measuring consumer surplus and deadweight)   Market Structure   Price   Quantity Economic Profit Consumer Surplus Dead Weight Loss Competition  500  400       Monopoly             The following table illustrates the distribution of retail grocery sales in the Asheville, NC market:                                                                                                               Market                                                                           Retailer                Share (%)  Kroger…

Lesson 8 - Costs Question 2

FOREIGN OBJECTS — AND INSECTS   During 2017 inspections of the Mars Inc. canning facility in Columbus, Ohio, where Pedigree, Iams and Cesar pet foods are manufactured, along with other brands, Mars told inspectors it was hearing consumer complaints about foreign objects — including insects — in the pet food.But the company insisted it was working to fully implement corrective actions.Pest control records at the facility noted damaged cans covered in flies, and dozens of employees had complained about cockroaches in the area, especially at night. Different employees described seeing “multiple roaches,” an “invasion of roaches,” “roaches everywhere” and even “millions of roaches” — which we hope was an exaggeration.Inspectors from the U.S. Food and Drug Administration (FDA) themselves observed 2 live roaches. The FDA stressed the seriousness of the pest problem, and the company “promised correction.”     Around 2015, we started hearing reports of so-called “wires” or plastic…

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The airline industry was hit particularly hard after the 9/11 attacks on the World Trade Center in 2001. In 2002, Southwest Airlines, one of the healthier airline companies, decided to lengthen the useful lives of its aircraft from 22 to 27 years. Shortly thereafter, following Southwest’s lead, other airlines made the same move.Would it have changed earnings or cash flows, and if it did, would the change have been favorable or negative? Is it favorable or negative

Suppose you are the manager of a firm in the textile industry. You have just learned that the government has placed the textile industry at the top of its list of industries it plans to regulate and intends to force the industry to expand output and lower the price of textile products. How should you respond?

Companies in the steel and alumina industry may react to an increase in the price of crude oil by increasing their prices to reflect the increased cost of production. This, in turn, may lead to higher prices for consumers. Alternatively, companies may seek to reduce their production costs by implementing cost-saving measures, such as switching to alternative sources of energy or reducing their energy consumption. In some cases, companies may seek government intervention, such as relaxing import controls or offering subsidies, to help them cope with the increased cost of production. Ultimately, the reaction of companies in the steel and alumina industry will depend on a range of factors, including the specific circumstances of each company, the availability of alternative sources of energy, and the actions of their competitors. An increase in the price of crude oil will increase the cost of production for the steel and alumina industry, which will increase the price of their products…

PRICE (Dollars per pound) 1 PRICE (Dollars per pound) Suppose that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3 per pound of turkey and a quantity of 600 million pounds per year. Suppose the Surgeon General issues a report saying that eating turkey is bad for your health. The Surgeon General's report will cause consumers to demand turkey at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Demand ° 200 400 600 800 1000 1200 QUANTITY (Millions of pounds) In the long run, some firms will respond by. Supply ? until Shift the supply curve, the demand curve, or both on the…

Production and costs are the primary building components on the supply side of the market. From the previous week, we know that consumer behavior forms the basis for the demand curves. This week, we will look at how production behavior by firms is behind the supply curve. A critical part of production decisions is profit. Many people think of profit in the terms of accounting profit, i.e., the difference between revenues from sales and the cost of production. However, when managers make production decisions they also look at economic profit that, unlike accounting profit, takes into consideration the costs of foregoing an investment in another activity (referred to as opportunity costs). Provide an example (preferably from an actual business operation) that demonstrates the differences in economic profit and accounting profit. You should include opportunity costs (explicit and implicit) in the comparison. Using your actual profit calculations explain why there is a difference in the…

Problem 06-04 For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit- maximizing level of output and how much profit will this producer earn if the price of pizza is $2.50 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output on the graph. Price ($/slice) 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0 Cost Curves Select Select Quantity (slices/day) Select 100 200 300 400 500 600 700 800 900 Tools -i At the profit-maximizing level of output, the producer's profit is: $ per day. 0

Scenario Use the following information to answer questions 16-19. The graph below shows the market demand for computers in a small country. To develop a domestic computer industry, the government prohibits imports of computers and gives a single local firm the sole right to produce and sell computers (that is, it is a legal monopoly). The demand curve shows the local demand for computers. The cost curves show the marginal cost (MC) and average total cost (ATC) of the single producer. The graph also shows the marginal revenue (MR) curve faced by this firm. Price per computer (Dollars) $3500 $3000 $2500 $2000 $1500 $1000 $500 0 MR MC.. ATC Demand 10 20 30 40 50 60 70 Quantity of computers (number per year)

Nancy Lerner is trying to decide how to allocate her time in studying for her economics course. There are two examinations in this course. Her overall score for the course will be the minimum of her scores on the two examinations. She has decided to devote a total of 1,200 minutes to studying for these two exams, and she wants to get as high an overall score as possible. She knows that on the first examination if she doesn’t study at all, she will get a score of zero on it. For every 10 minutes that she spends studying for the first examination, she will increase her score by one point. If she doesn’t study at all for the second examination she will get a zero on it. For every 20 minutes she spends studying for the second examination, she will increase her score by one point.

Five fishermen live in a village and have no other employment or income earning possibilities besides fishing. They each own a boat that is suitable for fishing, but does not have any resale value. Fish are worth $5 per pound and the marginal cost of operating the boat is $500 per month. They all fish in a river next to the village, and they have determined that when there are more of them out there on the river fishing, they each catch less fish per month according to the following schedule: Boats Fish Caught per Boat (pounds) 200 190 175 155 130 If each fisherman acts in his own best interest, his average cost is the same as $ continue operating his boat as long as his . Thus, there will be 1 2 345 Each fisherman will is positive. If he catches 130 fish, his profit is boats in the river.

A company estimates that it can sell 2,000 units each month of its product if it prices each unit at $65. However, its monthly number of sales will increase by 10 units for each $0.20 decrease in price. The company has fixed costs of $450. The cost to make each unit is $4.50. Find the level of production that maximizes the company's profit. They should produce units at a price of $ which will yield a profit of $

Below is a symbol found in most products. Discuss how this symbol talks about the social responsibility of a manufacturing industry( 7 Sentence and above)

Additional case study: Government intervention The price of raw sugar recently reached its highest level since 1981 due to problems with supply. Historically, raw sugar has traded at between 10 and 12 US cents per pound at the New York Board of Trade. But the price increased to over 18 cents last month. Growing demand in Brazil for sugar to be turned into ethanol for fuel, coupled with a sharp fall in Indian production have both been factors in the price increase. Sugar production in India for 2008-09 fell 45% year-on-year due to less rain in the monsoon season damaging a number of agricultural crops. The London-based International Sugar Organisation predicts that global consumption of sugar is likely to outstrip production by 9m tonnes next year, forcing food companies and governments to dig into stockpiles. In the US, snack producers including Mars, Nestlé and Krispy Kreme Doughnuts put pressure on the US government to relax import controls, warning that otherwise they might run out…

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Step by step with explanation answer.