Gitahi Semester: Spring 2015 1. The table below shows the total production of a firm as the quantity of labor employed increases. The quantities of all other resources employed are constant. Compute the marginal and average products and enter them in the table. Marginal Average Units Total product product of Labor product of labor of labor 0 0 ––– ––– 1 40 ______ ______ 2 100 ______ ______ 3 165 ______ ______ 4 200
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Problems . USAir was very busy analyzing the practices of its competitors-to-be, before it made the move to enter the low-cost commuter airline market. It looks like the efforts included attempts to measure the efficiency of operations and practices on these other airlines. To survive, USAir's MetroJet needs to adopt efficient practices, which will promote low costs. Of course, service must be of sufficient quality as well. The MetroJet team appeared to be "benchmarking" both operations efficiency
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labor when the firm uses 256 units of labor? b. Find an expression for the marginal product of labor, MPL, when the amount of capital is fixed at 81 units. Instruction: The second response is the exponent on L in the expression. Round your responses to 2 decimal places. MPL = *L ^ Then, illustrate that the marginal product of labor depends on the amount of labor hired by calculating the marginal product of labor for 16 and 81 units of labor. Instruction: Round your responses
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Chapter 7: The Costs of Production HW #7: Solutions QUESTIONS FOR REVIEW 8. Assume the marginal cost of production is greater than the average variable cost. Can you determine whether the average variable cost is increasing or decreasing? Explain. If the average variable cost is increasing (decreasing), then the last unit produced is adding more (less) to total variable cost than the previous units did, on average. Therefore, marginal cost is above (below) average variable cost. In fact, the
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A Discussion on Cost Behavior in Relation to Financial Statements Name Institution Date SLP Interpreting figures presented on the financial statement has always been a hectic task to the public. A trend analysis assists in the evaluation of the financial presentation of a business over a specific period of time. Periods to be analyzed ranges from months, quarterly, half yearly or between specific years depending on the situation. In accounting, two methods are widely adopted to analyze
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ways to increase revenue, minimize cost, profit maximizing quantity, concepts of marginal cost and marginal revenue, pricing and non-pricing, barriers to entry, and product differentiation. The things I have listed will ensure the success of my company. Increase Revenue and Minimizing Cost Increasing revenue and minimizing cost is what we strive to do as an organization. Many things considered in the process of creating a plan to increase revenue and minimize cost. I believe that I first need a budget
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| Fixed Cost | Variable Cost | Total Cost | Marginal Cost | 0 | 0 | $76.00 | $0 | $76 | $0 | 1 | 3 | $76.00 | $64.00 | $140.00 | $21.33 | 2 | 8 | $76.00 | $128.00 | $204.00 | $12.80 | 3 | 15 | $76.00 | $192.00 | $268.00 | $9.14 | 4 | 20 | $76.00 | $256.00 | $332.00 | $12.80 | 5 | 22 | $76.00 | $320.00 | $396.00 | $32.00 | Marginal revenue is equal to product price if this firm is in a perfectly competitive market. Since this is a perfectly competitive market, assume marginal revenue
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Economics, 9(3), 2009, 103-106 103 USING COST-VOLUME-PROFIT ANALYSIS IN DECISION MAKING GABRIELA BUŞAN, IONELA-CLAUDIA DINA * ABSTRACT: The cost-volume-profit study the manner how evolve the total revenues, the total costs and operating profit, as changes occur in volume production, sale price, the unit variable cost and / or fixed costs of a product. Managers use this analysis to answer different questions like: How will incomes and costs be affected if we still sell 1.000 units? But if
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EGT1: Economics and Global Business Applications Marginal Analysis By Christine Poole April 12, 2013 Abstract This essay will define marginal revenue, marginal cost, and profit, and it will explain the relationship each has with total revenue, total cost, and it will explain the concept of profit maximization. Marginal Revenue Marginal revenue is “The change in total revenue that results from the sale of 1 additional unit of a firm’s product; equal to the change in total
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STATEMENT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 3. ANALYSIS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 Cost Allocation and Profitability Analysis- - - - - - - - - - - - - - - 5 Analysis of alternatives - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6 Cost and Profitability Analysis for C-stores- - - - - - - - - - - - - - 9 4. CONCLUSION AND SELECTION OF FINAL ALTERNATIVES - - - -12 5. OTHER COMMENTS- - - - - - - -
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