End of Chapter Problems Chapter 1: 2, 8, 9, and 12 Problem 2 (pg. 27) Fixed Costs: $45,000 Variable Costs/Computer: $525 Sales/Computer: $925 Break Even Point: 113 Problem 8 (pg. 28) Fixed Costs: ProblemData: Leasing and insurance 1000 Break Even: 1000 Personal expenses 1000 Work Days 25 Total: 2000 Variable costs per day trip: Gas ($30 * 25 days) 30 Maintenance ($5 * 25 days) 5
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Question 1 Part A: (i): (ii)(iii)(iv): (iii): If the price for the orange set at 6, the market will provide 110 oranges per day while the demand for that will be just 60,so it means that we have surplus of 50 oranges per day. Because the equilibrium price is 5, so when the price increase the market provide larger amount of oranges to make more profit while the number of costumer decrease in order to the price. (it is in the previous diagram) (iv): In this case
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Theory of demand. Willingness to purchase any commodity----- >DEMAND< -----Power to purchase. Law of demand. If other things remain the same when price of a commodity decreases, the quantity demand of such commodity increases. Price 1α demand. ↓price -purchasing power↑-demand↑ Price | Q. Demand. | 10 | 2 | 8 | 4 | 6 | 6 | 4 | 8 | Price | Q. Demand. | 4 | 8 | 6 | 6 | 8 | 4 | 10 | 2 | Assumptions: 1. Income of consumer remains constant. 2
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| | Economics is more than just the study of charts, graphs, and detailed tables consisting of statistics and numbers, it explains an individual’s rational behavior in fulfilling their needs and wants. Economic exist as a means to understand how individuals and countries respond to limited resources whilst having unlimited wants. Adam Smith, also known as the “father of economics” focused on the study of why some nations prosper and other nations suffer in poverty. The allocation of resources
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A. When subtracted, total revenue and total cost provide the amount of profit for a given quantity of widgets produced. Once all profit values are determined via the TR – TC = P calculation for each increment of production, the point at which profit maximization occurs can be concluded. The largest gap between total revenue and total cost indicates the point at which profit maximization is achieved. (See Table 1) When using the marginal revenue to marginal cost approach, the ideal situation to have
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Introduction Jenny broke up recently with his boyfriend and she felt desperate as she was so regretful about losing two years of time on such a guy. Jenny was told that she could no longer chase back the time lost and so she decided not to look back and started to find another boyfriend. Soon, Jenny fell in love with Kris. Two years later, Jenny was engaged and she decided to accept the engagement after a thorough thinking. Jenny was then married and began a new page of life with Kris. From
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A. Explain profit maximization from the following approaches: 1. Total revenue to total cost 2. Marginal revenue to marginal cost Profit maximization is when the largest amount of profit is made based on output levels and prices. In the total revenue to total cost approach, profit is maximized when the total revenue exceeds total cost by the greatest amount. The profit maximization is going to be found between the two break even points. The break even points are where the total revenue and total
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Analysis of Regression Results: Low-Calorie Microwavable Food Company Name Course Tutor’s Name Date Analysis of Regression Results: Low-Calorie Microwavable Food Company An organization engages with a primary aim of achieving better and improved results from operations on a daily basis in many activities. The market is one place in which the organization can realize either success or failure depending on how it carries its activities (Slack & Lewis, 2003). The previously
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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
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What happens to bicycle supply? When prices of materials required for unit production increase we will see a shift in the entire supply curve because costs of resources is one of the six detriments of supply. In this case as prices of materials increase the entire supply curve will shift to the left indicating that it will now cost more than it did before to achieve the same number of outputs. As this happens average costs of production increase as does marginal cost. What happens to bicycle
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