D)Granite Tops for You uses 15 units of capital at $5,000 per unit and employs 50 employees at a cost of $500each. What is the company's fixed cost?A) $250,000B) $500C) $75,000Which of the following is used to measure market structure and performance?B) Four-firm concentration ratioA) Eight-firm concentration ratioC) HHI (Herfindahl-Hirschman index)D) All of the answers are correct.An industry is comprised of 40 firms, each with an equal market share. What is the four-firm concentrationB) 0.1ratio of this industry?A) 02C) 0.3D) 0.4D) $5,000tly competitive market, then it will most likely

Cost refers to the resources used, sacrificed, or expended to produce a good or service. It is the…

Granite Tops for You uses each. What is the company's fixed cost? B) $500 A) $250,000 Which of the following is used to measure market structure and performance? B) Four-firm concentration ratio index) A) Eight-firm concentration ratio C) HHI (Herfindahl-Hirschman C) $75,000 D) All of the answers are correct. C)03 An industry is comprised of 40 firms, each with an equal market share. What is the four-firm concentration ratio of this industry? B) 0.1 A) 02 D) 0.4 D) $5,000 y competitive market, then it will most likely

Granite Tops for You uses each. What is the company's fixed cost? B) $500 A) $250,000 Which of the following is used to measure market structure and performance? B) Four-firm concentration ratio index) A) Eight-firm concentration ratio C) HHI (Herfindahl-Hirschman C) $75,000 D) All of the answers are correct. C)03 An industry is comprised of 40 firms, each with an equal market share. What is the four-firm concentration ratio of this industry? B) 0.1 A) 02 D) 0.4 D) $5,000 y competitive market, then it will most likely

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 6E

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How many of the following will occur with a linear total revenue curve? (i) A linear cost curve (ii) A linear profit curve (iii) A single break-even point (iv) Increasing profits as output increases beyond the upper break-even point a.None b.Four c.Three d.One e.Two
A multiproduct firm’s cost function was recently estimated as C( Q1,Q2 ) = 90 − 0.5 Q1 Q2 + 0.4Q21+ 0.3Q22 a. Are there economies of scope in producing 10 units of product 1 and 10 units of product 2? b. Are there cost complementarities in producing products 1 and 2? c. Suppose the division selling product 2 is floundering and another company has made an offer to buy the exclusive rights to produce product 2. How would the sale of the rights to produce product 2 change the firm’s marginal cost of producing product 1?
Cells A1 to A3 contain the quantity produced for the three products. Whereas cells B1 to B3 and C1 to C3 contain profit/unit and production time required per unit respectively for the same three products. What is the content of the Set Objective cell for maximising Total Profit? a. =SUMPRODUCTS (A1:A3, B1:B3) b. None of these c. =SUM(A1:A3) d. =SUMPRODUCTS (A1:A3, C1:C3)
At the profit-maximizing output level, the slopes of the revenue and total cost curves are not equal, that is; MR(*) < MC(*).Select one: True False
Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of £40 each. Fixed costs amount to £240,000, and total variable costs equal £480,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2. (mark as many as apply) The proposal to cut prices by 5 percent would increase total revenues from £800,000 to 836,000 – correct Total costs would be £759,200 and total profits would be £76,800– correct The proposal to cut prices by 5 percent would decrease total revenues from £800,000 to 836,000 – incorrect Total costs would be £759,200 and total revenues would be £76,800 – incorrect Could anyone explain this??
When economists talk about a barrier to entry, they are referring to a.the downward-sloping portion of the long-run average total cost curve. b.a factor that makes it difficult for potential competitors to enter a market. c.the opportunity cost of equity capital that is incurred by a firm producing at minimum total cost. d.the declining output experienced as additional units of a variable input are used with a given amount of a fixed input.
Recall that profit equals revenue minus cost. For the revenue and cost functions shown, answer parts (a) through (e) below. R(x)equals=400x−2x^2 and C(x)equals=200x+4250, with 0≤x≤100 (a) Find the break-even point. The break-even point(s) is(are) x=?. (Type an integer or decimal rounded to one decimal place as needed. Use a comma to separate answers as needed.) (b) Find the x-value that makes profit a maximum. x=? (Type an integer or decimal rounded to one decimal place as needed.) (c) Find the maximum profit. The maximum profit is $? (Type an integer or decimal rounded to one decimal place as needed.) (d) For what x-values will a loss occur? Select the correct choice below and fill in the answer box(es) to complete your choice. (Round to one decimal place as needed.) A. x<? or x>? B. x>? C. x<? D. ?<x<? (e) For what x-values will a profit occur? Select the correct choice below…
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Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function4? = 35 − 0.5?. If total fixed cost is GH¢80 and average variable cost per unit function is 3? −51+325/Q, where Q is number of tooth paste produced and P is the price per tooth paste (in GH¢).What is the total profit at the profit maximizing level of output, and what is the best pricing policyoption?
Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $20 each. Fixed costs amount to $120,000, and total variable costs equal $240,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2. The proposal to cut prices by 5 percent would total revenues from $400,000 to . Total costs would be and total profits would be . If average variable costs are assumed to remain constant over a 10 percent increase in output, total profits after a 5 percent price cut would be .
A purely competitive firm finds that the market price for its product is $25.00. It has a fixed cost of $100.00 and a variable cost of $10.00 per unit for the first 50 units and then $30.00 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the first 50 units? (Click to select) No Yes What is the average variable cost for the first 50 units? b. Does price equal or exceed average variable cost for the first 100 units? (Click to select) No Yes What is the average variable cost for the first 100 units? c. What is the marginal cost per unit for the first 50 units? What is the marginal cost for units 51 and higher? d. For each of the first 50 units, does MR exceed MC? (Click to select) No Yes What about for units 51 and higher? (Click to select) No Yes…
Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $10 each. Fixed costs amount to $60,000, and total variable costs equal $120,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents.The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2.a. Evaluate the impact of the proposal to cut prices on (i) total revenue, (ii) total cost, and (iii) total profits.b. If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.