Q: A small tie shop finds that at a sales level of x ties per day its marginal profit is MP(x) dollars…
A: Given:MP(x)=1.60+0.10x-0.0012x2Now,MP(x)=P'(x)Thus,P'(x)=∫(1.60+0.10x-0.0012x2)dxP'(x)=1.60x+0.05x2-…
Q: c) Given Y = 10K0.5L0.5 and that w and r are the prices for Labour and Capital i) Derive the…
A: Given information q=10L0.5K0.5 Price of labor=W Price of capital=r
Q: Question 5 The demand curve for an input is also its entire marginal revenue product curve True…
A: (MR) is the expansion in income that outcomes from the offer of one extra unit of result. While…
Q: Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L1/2 K1/2 L…
A: Given information: F(L,K) = Q = 2L1/2K1/2 Where Q is output L is labor K is capital…
Q: A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor…
A: 1. A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor…
Q: Please give two explanations for the upward slope of the demand curve to the right. ( this is a…
A: The demand for a good is the quantity demanded by consumers at a given price during a given period…
Q: Which of the following statements is true? a. Marginal revenue product is the extra revenue…
A: Labors are one of the factors of production which is used in the process of production. The workers…
Q: Consider the following cost function: awi;w2; y) = wi/2 w21/2,2. (a) Find the marginal cost…
A: Given, C(w1,w2,y) = w21/2w21/2y2
Q: Explain excess capacity theorem with a diagram.
A: Monopolistic competition refers to the market situation in which there are many buyers and sellers…
Q: Suppose a firm has market power and faces a downward sloping demand curve for its product, and its…
A: A firm having market power is a single seller in the market which can influence the price of its…
Q: Consider Live Happley Fields, a small player in the strawberry business whose production has no…
A: Production Schedule:
Q: Refer to Table below. If the price of output is $20 per unit, the marginal revenue product of the…
A: Here Table consists of the information or output which is used to find the marginal revenue at each…
Q: the interdependence of input markets for labor, capital, and land might affect supply, demand, and…
A: There are many factors of products that are Land, Labor, Capital, and organization care available…
Q: 1. A firm uses a single input to produce a commodity according to its short-run production function…
A: (a) The firms profit function is (b)The profit maximising amount of input is 16 and the for output…
Q: Refers to Figure 18-1. Suppose the firm sells its output for $15 per unit, and it pays each of its…
A: The output(TP) rises from 210 to 285 units when the firm hires third labor. So, MP(marginal product)…
Q: Consider a firm that produces output (y) using only two inputs (A and B). The firm has a perfect…
A: Two inputs are perfect substitutes when only one of them is enough to produce output.
Q: The table shows the marginal cost C'00, the marginal revenue R'(x) for producing x items. The third…
A: Marginal cost(MC) is the addition to cost in producing one more unit of output. Marginal revenue(MR)…
Q: The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is…
A: Quantity of Labor (L) Quantity of Output Wage Rate (WR) Total Cost (L*WR) Marginal Cost (TCn -TCn-1)…
Q: Coldbox Corporation hires its workers in a perfectly competitive labor market and produces and sells…
A: Total product shows the total amount of goods produced by labors. Marginal productivity shows the…
Q: Firm X sells output at a price of $8 per unit and pays labor a wage of $20 per hour. The marginal…
A: Given;Price=$8 per unitWage=$20 per unitMPL=12-0.1L
Q: Consider the following cost function: C(w1;w2: y) = (wq 1/3 + w21/3,3,2. (a) Find the marginal cost…
A: Cost function: C(w1;w2;y) = (w11/3 + w21/3)3 y2 w1 is the price of input 1 w2 is the price of input…
Q: Which of the following would be considered a fixed cost of Marty Byrde’s Boat Rides & Rental? Group…
A: Total cost is the sum of fixed cost and variable cost. Fixed cost is that cost that does not depends…
Q: Tandy's Art is the only art studio and workshop in a small remote town, and Tandy’s Art is the only…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Refer to Figure 18-1. Suppose the firm sells its output for $10 per unit, and it pays each of its…
A: Given the graph, one unit increase in labor ie from 4 to 5, increases the output of 390-345=45…
Q: For Questions 31 and 32, use the following information: Consider a firm minimising the cost of…
A: Production function q=KαL1-α ............ (1) wage rate = w and rent on capital =r
Q: Tandy's Art is the only art studio and workshop in a small remote town, and Tandy's Art is the only…
A: Disclaimer :- As you posted multipart questions we are supposed to solve only the first 3questions…
Q: Suppose that the price of labor (the wage rate) is $100 a day and that the rental price of capital…
A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…
Q: 10.Assume that a firm can produce product A, product B, or product C with the resources it currently…
A: Total profits of a firm from the production of a good can be calculated by deducting it's total cost…
Q: Emco Company has an assembly line of fixed size A. Total output is a function of the number of…
A: Marginal productivity of labor (MPL) measures the change in total production due to change in the…
Q: Explain and illustrate using isoquants and isocosts how a firm that is currently using the least…
A: For a given isoquant, firm is trying to minimize the cost of production using the inputs…
Q: f q = 4 lnL and the good is sold for $10 then if the wage rate is $5 the number of units of labor…
A:
Q: What is marginal revenue? the addition to total revenue from selling one more unit of output the…
A: MR is the expansion in revenue that outcomes from the offer of one extra unit of result.
Q: The following table depicts the weekly output of a firm that manufactures computer printers. The…
A: Marginal Revenue Product = MP × Price
Q: A perfectly competitive firm's production function is Q=8LK where Q is the amount produced, L is the…
A: Marginal revenue product of labor measures the change in total revenue due to a change in labor by a…
Q: Why would a profit-maximizing firm expand the use of each input until its marginal revenue product…
A: Marginal revenue refers to the gain of additional revenue from each additional unit sold of a good.…
Q: The slope of an iso-revenue line is determined by?
A: An iso-revenue curve shows all possible combinations of two goods that would yield the same total…
Q: Economists who study production of goods by a firm consider two functions. The revenue function R(x)…
A: Cost function It is the function that represents the different costs at a different level of…
Q: Disutility Q.3.3 Explicit cost
A: Answer Disutility Utility = Level of satisfaction that is feasible once the products are were…
Q: Marginal revenue product describes the:
A: Marginal revenue is equal to the additional revenue generated when one more unit of output is sold.
Q: Consider the following cost function: C(w1;:w2: y) = w1 1/2wz1/2,2. (a) Find the marginal cost…
A: The following cost function is given: C(w1;w2;y) = w11/2 w21/2 y2 w1 is the price of Input 1 w2 is…
Q: Question 2. 1. Widget factory Inc. in Wisconsin has the following production function: F(L,K) = 2L/2…
A: Given production function :- F(L, K) = 2L1/2 K1/2 w = $30 r = $25 P = $50 K0 = 900 (fixed) So the…
Q: A company produces 800 units in a day. The firm has a worker put in one additional hour of labor.…
A: Marginal revenue is the change in TR due to additional unit of sale . MP is the change in TP due to…
Q: Hello, I would like to request help with the below discussion question for my Quantative Analysis…
A: We are going to execute profit maximisation method to answer this question.
Q: Suppose Ramone's Drones maximizes profits by making local deliveries using small drones and…
A: Profit is maximized when MRPK = Cost of capital When Cost of capital = $1000, MRPK = $1000
Q: 30 25 20 15 10- 1 3 5 6. 8. Labor 10- 4) 2. Marginal Product
A: Marginal product refers to change in total product with respect to change in input. It refers to…
Provide example of economic profit( explicit, implicit costs)
Step by step
Solved in 2 steps
- A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.If economic profit is $5000, explicit cost is $1200, total revenue is $7000 Calculate the value of implicit costThe table gives some of the costs of the Delicious Pie Company. The marginal cost per pie of increasing the output of pies from 100 to 200 is Total variable cost (dollars) Output (pies) 0 100 200 300 400 $8.00 $600 $6.00 $5.00 0 400 1,000 1,800 2,800 Total cost (dollars) 300 700 1300 2100 3100 ?
- The following table shows a profit-maximizing producer's marginal costs. The firm is operating in a perfectly competitive market and has fixed costs of $500. Marginal Cost ($) 200 Quantity 1 2 150 3 100 4 170 5 230 16 300 7 420 18 600 Refer to the above information to answer this question. What is the breakeven price?Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC₁ and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit?At what output rate (s) is economic profit equal to zero..
- Assume a number of street vendors sell hamburgers in a city. Each vendor has a marginal cost of 30 NOK per hamburger sold and there are no fixed costs. The maximum number of hamburgers that any vendor can sell is 100 per day. a) If the market is perfectly competitive and the price of each hamburger is 40 NOK. How many hamburgers does each street vendor want to sell and what is each vendor’s profit per day assuming the desired quantity is sold?b) Why is this solution not a long run equilibrium?c) Suppose all the vendors merges and thus appears as a monopolist in the market. After merging marginal cost is constant. Make a diagram and explain the optimal solution for the monopolist.d) How can you explain that the solution from c) is such that the profit is maximized?e) Explain the social costs of the monopoly situation in this market. f) Suppose many consumers in this hamburger market became “addicted”. How would you explain this change in consumers demand and how would it affect social…Should a company produce more goods when marginal revenue is greater than marginal costs? Explain.At a university faculty meeting in 2012, a proposal was made to increase the housing benefits for new faculty to keep pace with the high cost of housing. What will likely be the long-run effect of this proposal?
- c) A certain brand of vacuum cleaners can be purchased from several local stores as well as from several websites. If all sellers charge the same price for the vacuum cleaner, will they all earn zero economic profit in the long run? If all sellers charge the same price and one local seller owns the building in which he does business, paying no rent, is this seller earning a positive economic profit?In competitive markets economic profit becomes zero in the long-run. However, it is also possible for some firms to earn a greater accounting profit and to enjoy a higher producer surplus than other firms. How is it possible?Suppose a firm is able to sell their product for a price of $10. You have the following information on the firm's output and cost Output 500 $70 $100 Implicit Costs Explicit Costs Instructions: Enter amounts as a whole number. If the firm is earning a loss indicate with a negative sign (-). What is the firm's economic profit? $
