Marginal cost

response to a change in the tax rate d. wage rate in response to a change in the tax rate on earnings Objective: Analyze the effect of changes in marginal revenues and costs on a firm’s profit-making potential. 13. Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her explicit costs for the new business include  a. only the expenses incurred for office space, equipment, and supplies b. only her foregone salary of $42,000 per year

basketballs each day, which it sells to customers for $30 each. All costs associated with production and sales total $10,000; however, if the manufacturer were to produce one additional basketball per day, total costs would increase to $10,100. From these amounts, we can tell that a. the firm has negative profit. b. marginal cost equals $100. c. marginal cost equals $150. d. marginal cost equals marginal

factors or cost, measurement, analysis and summary. Executive Summary Should a company hire temporary workers or hire full-time workers to handle increase demand for the company’s product? Companies are

1. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,309,189. have a life of five years, and would produce the cash flows shown in the following table. Year Cash Flow 1 $484,309 2 -290,218 3 849,177 4 1,048,611 5 766,304 What is the NPV if the discount rate is 12.47 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.)

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 their additional value

effectiveness of the market structure for the company’s operations. Next, I will determine two factors that changed the market structure from perfect to imperfect competition. Then, I will analyze the major short run and long run cost functions for this company given certain cost functions. I will analyze substantive ways in which the company can use that information to make decisions

Chatman Ashford University BUS 640 Managerial Economics Dr. David Brownfield January 14, 2013 Chapter 11, Applied Problem, 8 a. This particular industry has a constantly increasing cost. There will be an increase in the demand for input factors for one key reason. Every day, new companies will be introduced into this market of remodeling, economic profits being the encouraging factor. Because of this, there will be a bid up on

PRODUCTION TECHNOLOGY AND COST 1. Consider the paddle production example shown in Table 23.2 (see Lecture 3). Compute the short-run average cost for 10 paddles with the following changes. a) Your opportunity cost of work time triples, from $50 to 150. b) The interest rate for invested funds is cut in half, from 10 to 5 percent. c) Labor productivity (the quantity produced by each worker) doubles. 2. Consider the long-run production of shirts. The cost of the indivisible inputs

maximums by takings the marginal revenue functions, Figure 6, winter, and Figure 13, summer, and finding the point at which each additional unit of production failed to have a positive impact on the revenue – in other words, where the marginal functions equaled zero. Using the price equations, Figure 3, winter, and Figure 10, summer, the firm must charge $145.82 per coat if they wish to sell 162 coats in winter and $117.68 in summer to sell 102

rides a day b. Which owner has the largest producer surplus when the price of a ride is $17.50? Explain. Rick is the largest producer surplus from rides when the price is $17.50 a ride. At this price he sells 15 rides a day because the 15th ride costs him $17.50 to