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Evaluate the view that the main goal of firms will always be profit maximization.
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- 6. Exercise 8.6 The Blair Company's three assembly plants are located in California, Georgia, and New Jersey. Previously, the company purchased a major subassembly, which becomes part of the final product, from an outside firm. Blair has decided to manufacture the subassemblies within the company and must now consider whether to rent one centrally located facility (e.g., in Missouri, where all the subassemblies would be manufactured) or to rent three separate facilities, each located near one of the assembly plants, where each facility would manufacture only the subassemblies needed for the nearby assembly plant. A single, centrally located facility, with a production capacity of 18,000 units per year, would have fixed costs of $900,000 per year and a variable cost of $250 per unit. Three separate decentralized facilities, with production capacities of 8,000, 6,000, and 4,000 units per year, would have fixed costs of $475,000, $425,000, and $400,000, respectively, and variable costs…Solve the problem. 19) A company manufactures two ballpoint pens, silver and gold. The silver requires 3 min in a grinder and 4 min in a bonder. The gold requires 3 min in a grinder and 8 min in a bonder. The grinder can be run no more than 87 hours per week and the bonder no more than 51 hours per week. The company makes a $8 profit on each silver pen sold and $12 on each gold. How many of each type should be made each week to maximize profits? A) Silver pens: 0 Gold pens: 381 C) Silver pens: 1359 Gold pens: 381 B) Silver pens: 1 Gold pens: 382 D) Silver pens: 382 Gold pens: 1359(Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a profit:
- DO >> # O ? O CENGAGE MINDTAP HW (Ch 13) Suppose the imaginary company of Roobek is a small, Cedar Rapids-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity (Pairs) 0 240 L234 1 5 .6 Total Cost Marginal Cost (Dollars) (Dollars) T 120 210 270 315 380 475 630 MindTap - Cengage Learning AAAAA Fixed Cost Variable Cost (Dollars) (Dollars) I Average Variable Cost (Dollars per pair) On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points ftriangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $210, so you should start your ATC curve by…3. Mr. Willy is determined to raise his revenue of selling blankets in the market. He is contemplating whether to raise the price of his product or not. He noticed that as he lowered the price from P300 to P200, his sales rose from 300 pieces to 550 pieces of blankets per day. If you are the consultant of Mr. Willy, what would you advise him to raise his revenue and profit? Explain your answer briefly and concisely. (Note: computation is required to justify your answer for this question) Hint: Use the concept of elasticity to answer this question.QUESTION 3 Read the article on “Kaalzua" to answer questions 3a, 3b and 3c Kaalzua: The modern-day furniture for the modern city dweller Source: 29 Nov 2021, Mint Kaalzua is a new-age furniture brand which designs and innovates flat pack furniture and products for the city dwellers. The Delhi based start-up offers digitally fabricated, hassle free flat pack solutions that solve the modern-day problems. They believe in a judicious balance of human expertise and smart technology. The products are prepared in such a way that they can easily be assembled without any screws, glue or welding. The le cad has moulded the digital fabrication process to accommodate different sustainable matenaastaarier than wood, like bamboo, recycled plastic etc. At present the furniture products are avang. Aôn the e-commerce platform www.kaalzua.com . The start-up has also partnered with major onlig skail stores. With this strong online presence, they plan to soon expand into experience centers e the country.…
- Problem 10-17 (algo) At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg's was quoted as saying, " . for the past several years, our individual company growth has come out of the other fellow's hide." Kellogg's has been producing cereal since 1906 and continues to implement strategies that make it a leader in the cereal industry. Suppose that when Kellogg's and its largest rival advertise, each company earns $0 billion in profits. When neither company advertises, each company earns profits of $11 billion. If one company advertises and the other does not, the company that advertises earns $46 billion and the company that does not advertise loses $2 billion. For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising? Instruction: Enter your response as a percentage rounded to the nearest whole number. is 314 percent(Figure: Profits)How much profit is the firm making at the profit-maximizing quantity? a profit of $300 The firm is not making a profit—it is making a loss of $300. a profit of $70 The firm is not making a profit—it is making a loss of $70.3. There are two profit maximising firms, Alpha Inc. and Beta Ltd. Both use labour, L and capital, K to produce their output, Q and they both employ workers at the minimum wage. Following a government review, the national minimum wage rises from W₁ to W₂. (a) Use an isoquant/isocost diagram to show how this will affect Alpha's optimal choice of inputs, assuming it wants to continue to produce the same output. (b) Following the increase in the wage rate, Alpha Inc. reduces the number of workers employed by significantly more than Beta Ltd. Construct the demand curve for labour for Alpha Inc. and explain how and why its shape will change if you graphed the same curve for Beta Ltd. There is a third firm in this market called Gamma plc. which also uses labour and capital to produce output, where w is the price of labour, r is the price of capital and Q is the output. Suppose that Gamma plc. is a price-taking firm and faces a cost function: 1 1 c(w,r,Q) = — w²r²Q² (c) By deriving an…
- 9. . He is the chief cook and handles all purchasing. Tina is the hostess and manages the front of the house (restaurant talk for the dining area). She schedules the wait staff, ensures that customers are well taken care of, and pitches in to bus tables and refill drinks as needed. Tina also handles the financial aspects of the business and is responsible for bookkeeping and tax compliance. Two years ago, Tony and Tina became parents of a baby boy, Joseph, nicknamed “LJ” for Little Joe. Tina brings LJ to work each day, and both Rosellis as well as the restaurant staff help out watching him. Recently, the restaurant has grown busier, so Tony and Tina expanded the hours of operation. As a result, the staff rarely has any free time and Tina feels she has too much to handle. Tony and Tina are considering outsourcing their bookkeeping and tax-filing needs to a local accountant. Typically, Tina spends 18 hours per month on bookkeeping and taxes. This increases to 40 hours in April. She uses…Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually. annual operating profit? A) -$10,000. B) $40,000. C) $70,000. D) $80,000.(1.) Johnny Rockabilly has just finished recording his latest CD. His record company marketing department determines that the demand for the CD is as follows: Number of CDs Price $24 10,000 22 20,000 20 30,000 18 40,000 6 50,000 3 60,000 The company can produce the CD with no fixed cost and a variable cost of $12 per CD. a. Find total revenues and marginal revenues for each of the quantities. b. What quantity of CDs would maximize profit? What would the price be?
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