46Q – 0.0085 Q2 + 0.00001 Q3 Weekly AVC= 46 – 0.0085 Q + 0.00001 Q2 Weekly SMC = 46 – 2(0.0085 )Q + 3(0.00001) Q2 =46-0.017Q+0.00003Q2 Weekly demand (P) = A+BQ =245 – 0.2Q Marginal revenue (MR) =A+2BQ =245+2(0.2)Q = 245+0.4Q Set SMC=MR 46-0.017Q+0.00003Q2= 245+0.4Q Solve: 0.00003Q2-0.383Q-199=0for Q* To fnd that , use Q*= -b +
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attainable. It can have a negative effect on the economy if not regulated to keep up with a changing market and tends to throttle a free market system. In a perfect market, prices will balance themselves. Ceiling price on bread lead to long lines, high costs in lost work hours, and binding prices for sellers. As an individual is required to wait in line for an hour, there is an hour of work cut into total revenue for the business or firm. Suppliers are guaranteed a loss in the benefit of selling a certain
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Differentiating between Market Structures Jessika Canales Díaz ECO /365 08/28/2010 Instructor: SR. Carlos Méndez David Differentiating between Market Structures In this simulation, the learner studies the cost and revenue curves in different market structures perfect competition, monopoly, monopolistic competition, or oligopoly faced by a freight transportation company, and makes decisions to maximize profits or to minimize losses. The simulation also deals with the concept of Prisoner’s
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CHAPTERS 7, 8, 9 (7) The Analysis OF Consumer Choice, (8) Production and Cost, (9) Competitive Markets for Goods and Services + Review CHAPTERS 7, 8, 9 (7) The Analysis OF Consumer Choice, (8) Production and Cost, (9) Competitive Markets for Goods and Services + Review The City College of New York Microeconomics The City College of New York Microeconomics Ramon E. Almendarez Date: 10/27/14 Dr. Jonatan Jelen Principles of Microeconomics Questions NP #4 Chapter 7 Li, a very
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manufacturing cost: $70 b. Variable selling and administrative cost: 20 c. Applied fixed manufacturing cost: 40 d. Allocated fixed selling and administrative cost: 15 e. What price will the company charge if the firm uses cost-plus pricing based onvariable manufacturing cost and a markup percentage of 110%? $84. $147. $210. $231. Some other amount. 2) Which of the following represents the cost-plus pricing formula? a. Price = cost + (markup percentage * cost). Price = cost + markup
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compared to the relative wage of labor in other countries “(Colander, 2010, p. 438). As companies move to cut costs, moving work overseas to employees that are willing to work for less money, in some cases significantly less money, can improve that company’s bottom line. As a telemarketing firm, our focus is on providing quality service to our clients, but our company has to demonstrate that we are cost effective to prevent that company from outsourcing to a foreign vendor. One of the things that
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following is an explicit cost or an implicit cost: a) Payments for labor purchased in the labor market EXPLICIT COST b) A firm’suse of a warehouse that it owns and could rent to another firm IMPLICIT COST c) The wages that owners could earn if they did not work for themselves IMPLICIT COST 3. What are economies of scale? Please give an example. What are diseconomies of scale? Please give an example. Economies of Scale: The forces which cause the firms average cost to decrease, as the level
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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 is when marginal revenue equals
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Question 1 4 out of 4 points An example of a time series data set is one for which the: Selected Answer: Correct data would be collected for a given firm for several consecutive periods (e.g., months). Correct Answer: Correct data would be collected for a given firm for several consecutive periods (e.g., months). Question 2 4 out of 4 points Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example? Selected Answer:
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by a profit-maximizing firm is equal to its marginal cost because if price were above marginal cost, the firm could increase profits by increasing output, while if price were below marginal cost, the firm could increase profits by decreasing output. A profit-maximizing firm decides to shut down in the short run when price is less than average variable cost. In the long run, a firm will exit a market when price is less than average total cost. 3. In the long run, with free entry and
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