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Q: The maximum possible weekly average product of labor in the plant is
A: Formula for average product/output: Average product = Total product / Number of worker
Q: )A production function: (a) Shows the cost of producing any level of output.…
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A: We know, Total cost(TC) = Fixed cost (FC) + Variable Cost(VC)
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A: Cost of production: These are the expenses faced by a firm for producing goods and services.
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A: A strategy where greatest advantage of lower-cost labor, regional suppliers, and local knowledge is…
Q: factors of production
A: The production factors help the production process to run efficiently. There is main four production…
Q: The long run is a period of time, or a time frame, in which all resources are fixed.…
A: A long run in the economics is the time when the manufacturers and producers have the flexibility of…
Q: 250 = 10K0.5L0.5
A:
Q: Spencer manages a store that sells speakers. Each Master Blaster takes 36 hours to create the…
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Q: For K > 0 andL > 0, the production function F(K,L) = 2KL + K has a. increasing returns to scale b.…
A: It has given that, K > 0 and L > 0 Now,F(K,L)=2KL+KAs K>0 and L>0lets assume K=2 and…
Q: Identify yes or no as to whether or not each of these costs would be relevant for the decision on…
A: Business have two types of cost. fixed and variable fixed cost cannot be shifted and have to be…
Q: If a firm has economies of scope, which of the following would best decribe what the firm is…
A: Economies of scope is defined as a situation where the production of one good lowers or reduces the…
Q: Define the term Manufacturing Costs?
A: Cost is the monetary value expended by a company to produce goods and services and to carry out its…
Q: Define production function
A: Production is the process of merging numerous material and immaterial inputs (plans, information) to…
Q: The production function y =2( K0.3 L0.2 ) exhibits constant returns to scale.
A: Production function shows relationship between output produced and inputs used in the production.
Q: A research study published in Social Science Medicine. "Production Functions for General Hospitals,"…
A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…
Q: ) The short run is a time period in which: (a) all resources are fixed.…
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Q: Distinguish between the short-run and long-run production decisions and illustrate their impact on…
A: Meaning of Production Function: The term production function refers to the situation under when a…
Q: Suppose that workmen are assembling a particular product for 40 working hours. Then they work on…
A: Learning curves capture the benefit that arises when workers and organizations get efficient at…
Q: The production period in which at least one input is fixed in quantity is the production run. long…
A: There are two types of production periods-short-run and long-run. These two cannot be classified on…
Q: Is total cost 0 when the level of production is 0?
A: # We know that total cost is the sum of total fixed cost and total variable cost.
Q: Use the firm's long-run cost-minimizing decision rule to explain the differences in the relative use…
A: The long-run cost-minimizing decision rule guides a firm in selecting the optimum mix of factor…
Q: Given Q=100kL0.5 , C=1200 w=30 r=40 (a)Determine the quantity of labour and capital the firm…
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Q: For firm A, is the following an internal or external economy of scale? Firm A benefits from a pool…
A: Economies of scale- It is the cost advantage experienced by companies when production is efficient…
Q: Define returns to scale and its implications for production decisions.
A: Returns to scale refers to the percentage change in the output with respect to the percentage change…
Q: Which of the following is a typical example of a variable cost of production in a business firm? A.…
A: Variable Cost is that cost which keeps on changing with the change in the level of output.
Q: Calculate a cost function from a production function and explain how economic costs differ from…
A: The economic cost is the money value of all resources in the business. It also implies the…
Q: Distinguish between short-run and long-run production decisions and illustrate their impact on costs…
A: Average cost is total cost divided by total production while marginal cost is the change in total…
Q: For firm A, is the following an internal or external economy of scale? Firm A benefits from lower…
A: Economies of scale refer to the situation where the firm’s average cost decreases as output…
Q: For a constant returns to scale production function a. marginal costs are constant but the average…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
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Q: The additional cost of producing one more unit of output is calicu
A: A firms has fixed cost and variable cost. The total cost is the sum of fixed cost and variable cost.
Q: The cost that cannot be recovered if a firm goes out of business is known as __________. a. Cost of…
A: If a firm goes out of business then some of the costs can not be recovered such as Advertising…
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A: It is the ability of a business or company to earn maximum profit with low cost which is considered…
Q: When production is at level zero then the value of ___________ cost is always zero.
A: Total cost = fixed cost + variable cost Fixed cost always remain constant even when output is zero.…
Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…
A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…
Q: A firm produces according to the following production Function: Q= K^0.4L^0.5. MCK is $10 per K, and…
A: Returns to scale is the increase in production due to same unit increase in the inputs, labor and…
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- Q.5 Deprive monopoly demand for an input when several inputs are used in the production process. (Explain Minimum 2000 words... Only 15 percent plagiarism allowed.)Company A is the only supplier of glass in Big Apple City used for tall buildings’ exteriors. Its marginal cost of production is cA=1, and it has no other production costs. The demand for such glass in Big Apple city is QD=2-P. Company B in Jersey City produces the same glass and is considering whether to expand to Big Apple city. If it enters, it needs to get a permit to allow it to be a supplier in the Big-Apple city at a cost of L=0.5, which does not vary with quantity of output, and its marginal cost of production is cB=0.5. If it expands to the Big-Apple city, companies A and B both supply to the market, and the market price P satisfies QA+QB=2-P, where QA is company A’s production level and QB is company B’s. a) If company B expands to the Big-Apple city, what is the resulting price in a Nash equilibrium? b) Company B hires a consulting company to advise whether it should expand to the Big-Apple city. If you’re running the consulting company, what is your advice? Explain your…A Los Angeles firm uses a single input to produce a recreational commodity according to a production function f(x)=4x1/2, where x is the number of units of input. The price of the commodity is $100 per unit, and the input cost is $50 per unit. The fixed costs are zero. A: Write down the firm’s profit function. C:Find the profit maximizing amounts of input and output. What is the maximum profit? C:Suppose that the firm is taxed at $20 per unit of its output (note it is a quantity tax) and the price of its input is subsidized by $10 per unit. What is the new input and output levels? What is the new maximal profit?
- Discuss the issues faced when demand for rail and ocean transport does not meet the supply of transport (15 marks)Please answer parts c, d and e only Andy owns a valuable postage stamp he values at 1,000 dollars. Betty wants to add this stamp to her collection and is willing to pay 1,200 dollars for it. By email, Andy and Betty reach an agreement that Andy will sell Betty this rare stamp for 1,100 dollars. Christine contacts Andy and offers to pay 1.500 to Andy for the stamp because Christine values this stamp at 1,800 dollars. (a) What surplus amount was generated by the original email contract? Why is this amount suboptimal? (b) Andy contacts Betty by email and advises her that he wants a higher price from her because Christine has offered 1,500 dollars for the stamp. Instead of renegotiation, Betty tells Andy that she will be seeking specific performance, a court order that Andy perform the original 1,100 dollar contract. How will specific performance affect the allocation and redistribution of surplus among Andy, Betty and Christine? If transaction costs = 0, would there be a renegotiated…Imagine a firm with a marginal abatement cost (MAC) function equal to: MAC = 45 - 5E. The government introduces a per-unit tax on emissions equal to $10. For a profit-maximizing firm, total compliance costs (total abatement costs plus tax payment) are $____.
- The marginal revenue of socks given as MR = 100-2Q The marginal Cost Of socks is given as MC = 5078Q. How many socks will be produced to maximize profit а 0 b. 5 C.50 de 100Zar Island Gas Company is the sole producer of natural gas in the remote island country of Zar. The company's operations are regulated by the State Energy Commission. The demand function for gas in Zar has been estimated as: P = 1,000 − .2Qwhere Q is output (measured in units) and P is price (measured in dollars per unit). Zar Island's cost function is: TC = 300,000 + 10QThe firm's asset base is $4 million.In the absence of any government price regulation, determine Zar Island's optimal (i) output level, (ii) selling price, (iii) total profits, and (iv) rate of return on its asset base.A vertically integrated firm has 2 divisions; upstream and downstream divisions. The upstream division produces chemical Y, whose average total cost is ATCU = 10 + 2QU, where QUis the quantity of Y. The downstream division has its own average total cost of ATC = 20 + 3Q where Q is the quantity of the firm’s final product. There is no external market. What is the transfer price (PU)? Question 55 options: PU = 10 + 2QU. PU = 10 + 4QU. PU = 20 + 3QU. PU = 20 + 6QU. None of the above.
- a) Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm A is a competitive firm and faces an equilibrium price of £12 for its product. The cost function of firm A is (q,x) = q2 + (x-4)2 . Firm B is a competitive firm and faces an equilibrium price of £10. Firm B’s cost function is (r,x) = r2 + xr. Compute the equilibrium prices and quantities and the profits of the two separate, competitive firms. Interpret the first order conditions. Explain. b) Compute the social optimum, that is, the equilibrium prices, quantities, and profit when firm A and B are merged. Interpret the conditions and compare it to the solution in (a). Explain. c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the social optimum in (b). d) Discuss other methods the government can use to restore the social optimum. Discuss advantages and disadvantages of the methods you propose. Explain.Global warming is mainly caused by Greenhouse gas (GHG) (i.e., CO2) emission. Aiming to be carbon neutral by 2060, China starts penalizing the polluting firms by introducing a specific tax to those firms. (Source: https://www.nature.com/articles/d41586-020-02927-9)Suppose you are the owner of a profit-maximizing firm in China that produces goods with carbon emission. The specific tax (with tax rate t) is imposed in proportion to the quantity of your firm’s output (q). The market of your firm’s product is assumed to be perfectly competitive. Assume there is no fixed cost: use a fully labelled diagram to show the effect of the tax on the cost curves, and briefly discuss the movement of the curves. (10 marks) Suppose China government decides to raise the tax rate. Discuss the impact of the rise on your firm's output level with economic models wherever necessary. (20 marks)You are a self-employed accountant who owns Budget Tax Prep, which specializes in tax preparation services. There are many competitors in your industry who offer a similar service, but quality of service varies among competitors. Entry into this industry is relatively easy. Your company's daily demand curve and cost functions, including your own opportunity costs, are currently (with Q being number of tax returns processed per day): Demand: P(Q) = 100 - 4Q Total Fixed Costs: TFC = 60 Total Variable Costs: TVC(Q) = (8.5)Q2 Marginal Costs: MC(Q) = 17Q A. Find your company's profit maximizing output and price using any method you wish. B. Calculate the level of total profit or loss per period that would accrue to the firm under the output and price determined in (a). C. What might happen to your profits over time, given the characteristics of your market described above.
