Suppose a firm can sell one unit of product for $50, two units for $45 each, three units for $40 each, or four units for $35 each. When the firm sells four units, marginal revenues is equal to a. $5 b. $25 c. $20 d. $30 e. $35
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- X and Y are factors of production. X's marginal product is 30 and Y's marginal product is 20. X=5 dollars for each unit, Y= 4 dollars for each unit. Since Y costs less than X, can the firm keep produce the same output at a cheaper cost by using less of X and more of Y? Explain why or why not.You are given the following cost data Output(q) Total variable cost 0 0 1. 20 2. 35 3. 60 4. 90 5. 125 6. 165 Suppose fixed costs are $50. How many units of output will the firm produce at a price of $24 and at a price of $36? What is total revenue and total cost at each price? What is profit at each price?(MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of X-brand energy drink (in a 500 ml bottle). A. What is the profit function of X-brand energy drink production?
- After which administrative assistant do diminishing marginal returns begin for Jose's Tax Office? Explain using numbers. Assume Jose's Tax Office sells its tax advisory services in a perfectly competitive market at a unit price of $4. Calculate the marginal revenue product of the fifth administrative assistant. Show work.Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output is $9. Given this information, the Average revenue for producing 11 units is $2. Average revenue for producing 11 units is $4 Marginal revenue for producing the 11th unit is $2. Marginal revenue for producing the 11th unit is $4.(MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of X-brand energy drink (in a 500 ml bottle).A. What is the profit function of X-brand energy drink production? B. What is the profit-maximizing value of Q? Solve the problem using a tabular solution, showing the Profit, MB, MC and MNB values; assume Q varies by 50 units (in 500 ml bottle). Highlight the profit maximizing level.
- Capital Labour Total product Average product marginal product 3 0 0 3 1 5 3 3 21 3 5 30 3 7 30 3 9 27 i) Find the Average product and marginal product ii)at the employment of how many units of labour do diminishing returns set in iii) Explain what is meant by the law of diminishing returns iv) Concerning price elasticity of supply ,draw diagrams on unit elastic supply and relatively elastic supplyConsider a firm that is currently producing a level of output that maximizes its profits. The firm generates revenue of $40 million per month. Each month, the firm spends $30 million on worker compensation and $20 million on renting buildings and machinery. a) What is this firm’s current monthly profit? b) Should this firm continue to operate in the short run? Why?Flat Screen Televisions Lose $126 per Unit Sold: Sony CorporationMost of the cost of a flat screen TV involves the LCD panel. Globally, 220 million flat screen TVs were sold in 2011 for $115 billion. Although scale economies in massive factories and volume discounts on electronic input components have driven the cost of LCDs down from $2,400 to $500 the last decade, the price has fallen even faster. In 2001, the average selling price of a large LCD panel was over $4,000. By 2011, this price had fallen below $600. Sony Corporation finds its flat screen TVs now fail to cover the full cost of the LCD panels and instead impose a $126 ($500 - $374) loss per TV sold. Nevertheless, the indirect fixed costs of the LCD factories including Korean Samsung, Japanese Sharp, Panasonic, and Sony constructed are partially covered by continuing its operation (continue production). Losses would be greater in the short run if they shut down.As an economic consultant, what would you advise Sony…
- Which of the following is an implicit cost to a firm that produces a good or service? A. Labor costsB. Costs of operating production machineryC. Foregone profits of producing a different good or serviceD. Costs of renting or buying land for a production siteExplain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is on the rise. People often believe that large firms in an industry have cost advantages over small firms in the same industry. For example, they might think a big oil company has a cost advantage over a small oil company. For this to be true, what condition must exist? Explain your answer.You are given the following cost data. You can’t produce fractions of a unit. Q 0 1 2 3 4 5 6 TFC 12 12 12 12 12 12 12 TVC 0 5 9 14 20 28 38 If the price of output is Rs 7, how many units of output the firm will produce? Will the firm operate in short run and long run? b) How does Total Revenue change with change in price under conditions ep=1, ep<1 and ep>1?
