Marginal cost

have to examine these questions as if the USS team only knew what they studied and examined prior to making their recommendation to sign the proposal. USS engineering team considered the configuration/capital cost issue because this information would be more reliable than operating costs or product quality. The team quickly ascertained, along with the vendors, that adapting CSP to the needs of the USS’s existing customer base along with contractual obligations and constraints imposed by the Mon

| Save Question 12 (5 points)   Economic profits are calculated by subtracting: | 1) | explicit costs from total revenue. | | 2) | implicit costs from total revenue. | | 3) | implicit costs from normal profits. | | 4) | explicit and implicit costs from total revenue. | Save Question 13 (5 points)   To economists, the main difference between the short run and the long run is that: | 1) | the law of diminishing

studios; this is due to the fact that there are discounts for children and senior citizens. (Phlips L. , 1983) However, this can be seen as not being discriminative at all due to the fact that if the price difference full reflects the difference in the cost of carrying the good from the seller’s location to the buyers’ location. For price discrimination to exist we need to sell the same products or services to different consumers which would not be possible without fulfilling specific conditions. This

Production possibilities curve data   | A | B | C | D | E | F | Capital goods | 150 | 140 | 120 | 90 | 50 | 0 | Consumer goods | 0 | 20 | 40 | 60 | 80 | 100 | | | | | | | | In Exhibit 2-4, the concept of increasing opportunity costs is represented by the fact that: a) Greater amounts of capital goods must be sacrificed to produce each additional unit of consumption goods. Question 4 (0.5/0.5) As shown in Exhibit 8-3, in order to maximise its profit, what price should

c. reconciliation d. collective bargaining e. impasse 14. You are stranded on an island and can either catch four fish in one hour or pick eight bananas in one hour. From this information, the opportunity cost of one fish is: a. 2 bananas. b. 1/2 bananas. c. 5 bananas. d. 2 1/2 bananas. e. zero, since you can 't compare bananas and fish. 15. Whatever else you learned about

significantly high marginal cost; 3) The number of the consumers who have significant preference for one product is significantly high. However, unbundling can benefit consumers or increase consumer surplus under any of the four conditions: 1) Consumers’ preferences are sufficiently different; 2) Consumers might benefit from the price reduction; 3) The percentage of the consumers with similar preference relative to consumers with different preference; 4) Firms have significantly low marginal cost. However

firm with market power”, and “market power is the power to raise price above marginal cost without fear that other firms will enter the market”, (Cowen 236). This lack of competition allows Mylan to reap monopoly profits in the short and long run. Graph ‘A’ displays what happens when Mylan has no competition in the epinephrine industry. To maximize profit, Mylan would “produce until marginal revenue equals marginal cost”, (Cowen 236). This point occurs at the blue circle. Moving down from this point

workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. It also tells us that the firm's fixed cost is “high enough” so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30. This assignment allows you to determine the specific details about this fictitious company in order to conduct an

decrease after a certain point. The total fixed cost is the same regardless of the output; the total variable costs will change with the level of output resulting in the total cost as the sum of the fixed cost and variable cost at each level of output. Over the 0 to 4 range of output, the TVC and TC curves slope upward. They reflect a decreasing rate due to the increasing minor returns. The slopes curves will increase due to these diminishing marginal returns. Graph Insert B. Graph AFC, AVC

Chapter 4: Costs and Cost Minimization Multiple Choice 1. Suppose you are a star basketball player at a major university in your sophomore year. You are sought after by several NBA teams. Which of the following choices best characterizes your opportunity cost if you choose to drop out of college and enter the NBA? a) The value of your college scholarship that you have given up. b) The skills that two more years of playing at your college would have given you along with