Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry’s produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this information, we can conclude that Harry's production of large pepperoni pizzas

Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry’s produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this information, we can conclude that Harry's production of large pepperoni pizzas

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.5IP

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Lobo Lighting Corporation currently employs 100 unskilled laborers, 80 factory technicians, 30 skilled machinists, and 40 skilled electricians. Lobo feels that the marginal product of the last unskilled laborer is 400 lights per week, the marginal product of the last factory technician is 450 lights per week, the marginal product of the last skilled machinist is 550 lights per week, and the marginal product of the last skilled electrician is 600 lights per week. Unskilled laborers earn $400 per week, factory technicians earn $500 per week, machinists earn $700 per week, and electricians earn $750 per week. Is Lobo using the lowest cost combination of workers to produce its targeted output? If not, what recommendations can you make to assist the company?
Suppose a grocery store's sales are 200,000 TL in one year. During this same time period, the firm paid 50,000 TL for grocery stock sold, 70,000 TL for wages and salaries, 20,000 TL on taxes and insurance, and 10,000 TL on other expenses. At the beginning of this period, the grocery store owner had received the following two offers:He could rent the store to another grocer and work for a large chain in which case he wouldmake a return of 35 ,OOO TL during that year (including his salary).Offer II: He could have sold the store and invested in a stock which together would have yielded a returnof 35,000 TL during that year, and gotten a job paying 15,000 TL. He declined both offers. a.What is the difference between explicit and implicit costs to a firm? What is the implicit cost of the businessin question?b.Calculate his economic profits for the year.c.Was his decision to keep the grocery store economically rational? Explain why or why not. By referring tothe relevant concepts.
The following table shows the results of operations of a dishwasher manufacturer in 2021. Price per dishwasher sold in 2021 $1,000 Total Number of dishwashers produced in 2021 9,000 Total number of dishwashers sold in 2021 8,000 Number of dishwashers sold in 2021 produced in 2020 2,000 Costs of parts and components used in production $2,000,000 Wages paid in 2021 $4,500,000 Rent and interest paid in 2021 $500,000 National income accountants will include dollars from the above table in the 2021 GDP. However, the manufacturer's value added in 2021 to the GDP only equals dollars. This is how much this producer's 2021 activities contributes to total GDP in 2021. From the viewpoint of national income accountants, this producer's profit resulting from 2021 production activities
Erin quit her job, where she earned $90,000 per year, to start her own economic consulting firm. She invested $60,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $50,000 for rent on the office building, $300,000 for wages and salaries of employees, and $10,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $48,000. During the year, the firm billed its clients for 2,400 hours at $200 per hour. The typical rate of return on financial investments in the economy was 5%. Erin's accounting costs were $_____ Her cost of capital was $____ Her total costs were $ ___ Her economic profit was ____ And her normal profit was $ ____
why is 1-l1 hours worked and not just l1 as it states in the question
Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee Do you think she’s likely to be right? Why or why not? Yes, hiring more workers will mean more customers can be served. Yes, more workers will increase the supply and make more coffee available for sale. No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine. No, the current workers just need better training to work more efficiently. Adding more and more workers does not constantly increase…
Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee. a. Adding more and more workers does not constantly increase production because of _______ SELECT THE CORRECT ANSWER different productivity levels between various laborers. diminishing marginal costs. diminishing marginal product of labor. substitutes in production.
If output is produced according to Q = ( KL) 3/4, then this production process exhibits: a.first decreasing and then increasing returns to scale b.first increasing and then decreasing returns to scale c.increasing returns to scale d.decreasing returns to scale e.constant returns to scale Hedge Fun is a landscaping firm that specializes in topiary. Last year, the firm had 60 employees and served 120 customers. This year, it had 70 employees and served 140 customers. The average product of labor is at a maximum when the number of customers is: a.equal to 120 b.greater than 140 c.equal to 140 d.between 120 and 140 e.less then 120
Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $80,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm billed its clients for 2,700 hours at $250 per hour. The typical rate of return on financial investments in the economy was 8%. Question 1 In the scenario above, what was Kate's explicit cost ($)? Numeric Answer: Question 2 In the scenario above, what was Kate’s cost of capital ($)? Numeric Answer: Question 3 In the scenario above, what was Kate’s economic profit ($)? Numeric Answer: Question 4 In the scenario…
Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $70,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm billed its clients for 2,700 hours at $240 per hour. The typical rate of return on financial investments in the economy was 8%.
Last year, a toy manufacturer introduced a new toy truck that was a huge success. The company invested $2.5 million for a plastic injection molding machine (which can be sold for $2.0 million) and $100,000 in plastic injection molds specifically for the toy (not valuable to anyone else). Labor and the cost of materials necessary to make each truck is about $3. This year, a competitor has developed a similar toy that has significantly reduced demand for the toy truck. Now, the original manufacturer is deciding whether they should continue production of the toy truck. If the estimated demand is 100,000 trucks, what is the break-even price for the toy truck? Should you shut down?
Alexandro, a French national is working as a Manager in an international company in the United States. Alexandro supervises about twenty two product engineers and five technicians in an automobile manufacturing unit. The technicians and engineers report to Alexandro every Tuesday of the week to update of their work and Alexandro finds this very taxing and cumbersome (stressful). In fact, Alexandro proposed to introduce a paper-report system where all the employees he supervises can write and submit paper-based reports. But, the management rejected his idea citing more bureaucracy to which Alexandro told his immediate boss, "This is how we do it in France. It is the right way and perhaps this should be implemented here too." You understand that Alexandro has adopted: A. Stereotyping B. Ethnocentrism C. Cultural pluralism D. None of the above