1. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?
Q: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC) cur...
A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost ...
Q: 1. The following table contains valuations for goods X and Y. Suppose that the marginal cost of prod...
A:
Q: The term footing refers to the O Process of posting O Addition of column of figures O Process of obt...
A: Footing is the end balance when we sum all the debits and credits. Debits are tallied, followed by...
Q: For each of the following events, what is the likely effect on GDP?
A: Gross Domestic Product is the aggregate money value of all final goods and services produced in a ye...
Q: Total Average Fixed Variable fixed variable total Output Costs MC Costs Costs costs costs costs a. C...
A: Answer a. To complete the table given, different formula's are to be used. Total Fixed Cost = 100 (...
Q: For an investment in a foreign-currency-denominated financial asset, which of the followings is/are ...
A: Answer is both c and d Here is why When you invest in foreign currency as an financial asset your fi...
Q: 61. Productivity of land can be raised by A. O Extensive cultivation B. O Intensive cultivation C. O...
A: Increasing productivity of land is very essential for the better production of various crops in it. ...
Q: Utilitarianism definition
A: It is one of the morality theory. It proposes actions that cause happiness. It opposes actions tha...
Q: I. Increase in interest rates causes the supply curve to shift. II. Monetary expansion causes a decr...
A: Here, four states about the market is given where supply and demand curve are affected by various de...
Q: Which of the following is the best example of "what goods and services should be produced?" the prod...
A: We know whether it is developed or underdeveloped countries each has to face the central problem whi...
Q: A firm used $1,900 worth of peanuts and $100 worth of salt to produce peanut butter. This required c...
A: Value-added is a method of calculating the final value of the output of a firm and GDP without the i...
Q: 100 95 93 86 im found the data above with a very popular breakfast that they sell. tal revenue with ...
A: Given Price and Quantity demanded Total revenue = Price * Quantity Price elasticity of demand = %a...
Q: Price (dollars per pie) 5 4 2 2 4 5 6 Quantity (thousands of pies per week) The demand for apple pie...
A: Demand is perfectly elastic when a small change in price can cause an infinite change in quantity de...
Q: 1) Four mutually exclusive alternatives are being evaluated, and their costs and revenues are itemiz...
A: Present worth is an equivalence method of analysis in which a project's cash flows are discounted to...
Q: Consider the following graph and choose the correct option: MC $18 E ATC AVC 14 12 B - 10 Minimum av...
A: The given graphs shows different types of cost curves of a firm, such that average variable cost cur...
Q: Suppose an individual in the Grossman model is trying to decide what to have for dinner. His options...
A: 1) The given Utillity function is: U = 3Z+H The utility for every meal For Steak and eggs U = 3(7) -...
Q: C. Identify what is being asked in the following 1. What is the term associated with Community Actio...
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for...
Q: Consider the zero capital mobility framework. If the economy is in long-run equilibrium, determine t...
A: The amount of interest due every period stated as a percentage of the amount lent, deposited, or bor...
Q: While individuals face trade-offs in consumption, as shown by the budget constraint. there is no suc...
A: Trade off occurs when resources are scarce. Scarcity refers to shortage of goods in terms of demand ...
Q: Consider a project which involves the investment of P100,000 now and P100,000 at the end of one year...
A: Gh
Q: Suppose that Akbar has consumed two goods Ice cream and apple juice. Details of MUice-cream and MUap...
A: We are going to find Utility levels for Akbar using Marginal Utility theorem to answer this question...
Q: In the following situation, indicate whether the physician's discriminatory action is taste-based or...
A: The cost of pharmaceuticals is rising at an alarming rate. Variation in physician practise has a sig...
Q: Iwo firms produce a homogenous product. Let p denote the product's price. The output I of firm 1 is ...
A: The equilibrium price(P) and quantity(Q) can be estimated by using the following steps: First: Find ...
Q: A. Is product X a normal or an inferior product? Justify. B. How are product X and product Y related...
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash flo...
A: Given:- Cash flow time 5 = $ 5000 Annual growth in cash flow = 7% Number in cash flows = 9 Future ...
Q: Suppose the price of avocados increases by 7% in a given market in which the market demand curve for...
A: Price elasticity of demand is important in determining the changes in revenue when there is a change...
Q: 5. A toy factory has an annual demand for 20,000 of tops. It cost $1.50 to store one top per year. I...
A: The given constraints are k=1.5, g=3.5, f=500, M=20000 Total cost function T(q)=500*20000q+3.5*20000...
Q: If 1 million people are unemployed and 9 million people are employed how large is the labor force? 1...
A: People who are willing to do work but cannot find job are considered as unemployed. People who are w...
Q: Suppose that an economy's capital increases so that the labor-capital ratio decreases. According to ...
A: Economic capital is a risk indicator that is based on capital. It is the amount of capital necessary...
Q: Aggregate demand is..? A) Sum of consumption, imports and exports. B) Sum of the demand for all of ...
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...
Q: The market demand and supply equations for theme park in a city are given by P=30–0.005QD andP=10+0....
A: CS = area above the equilibrium price and below the demand curve PS = area above the price and below...
Q: lace the following goods and services into pairs of likely substitutes and pairs of likely complemen...
A: Goods: In financial aspects, merchandise are things that fulfill human needs and give utility. For i...
Q: 7. Which of the following is not true of the "Battle of the Sexes" Game? a. The predicted outcome de...
A: Battle of sexes: In this game, the players do not have dominant strategies. In general, what player ...
Q: Which change would cause a decrease in price and a decrease in the quantity sold? Pick a,b,c, or d ...
A: "Correct answer is option b."
Q: union's indifference curves have negative slope, but this text folows the convention of naming MRS a...
A: The demand curve for labor shows the amount of labor businesses wish to employ at some random compen...
Q: 3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium p...
A: Rent control is the price ceiling that sets the maximum rent that can be charged. It is imposed to p...
Q: The demand and supply schedule for a product is shown below. The government sets a maximum price of ...
A: The given table provide information about quantity demanded and quantity supplied at a different pri...
Q: Use the graph to calculate consumer surplus when the market is at equilibrium. Price $40 30 20 15 10...
A: Here, when analyzing the given graph, it can be seen that equilibrium price is $20 and equilibrium q...
Q: The partial data in the table below are for the economy of Arinaka. Planned investment, government s...
A:
Q: Skill Circle Model Assume a firm incurs overall labor costs of $22 per hour- which includes wages an...
A: In the above question, it is given that : Skill Circle Model Assume a firm incurs overall labor c...
Q: Which of the following would increase the demand for beef? A.) lower pork prices B.) higher prices ...
A: The factors which affect the demand of a product are: 1. Price of substitute goods 2. Price of compl...
Q: When demand increases, there is a _____ at the old equilibrium price, which puts _____ pressure on p...
A: The curve that depicts various quantities of goods being demanded by consumers at various levels of ...
Q: If the inflation rate is 3% per year, how many years will it take for the cost of an item to double,...
A: GIVEN If the inflation rate is 3% per year, how many years will it take for the cost of an item t...
Q: Which of the following options is not a means of retaining employees? Select the single best answer:...
A: Organizations are being forced to rethink employee retention as the economy improves, a skilled labo...
Q: Milford Industries provides medical equipment to oncology and surgical units in major hospitals. Mil...
A: Given, IDC allocation for three departments Production, subassemblies, and final assembly is given b...
Q: Population: Adult Number of Number of Number of populationadults (number employed: unemployed:in the...
A: The labor force participation rate is an estimate of an economy's active workforce. The formula is t...
Q: eBook A father is now planning a savings program to put his daughter through college. She is 13, pla...
A: Average rate of inflation is 5% annually. So if she enrolls in a 4 year program after 5 years, total...
Q: Utilize the provided goal post of the United Nations. Based on the given information: a. Life expect...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: model with a single-time-period lag on onsumption function, as described below, is initially in equi...
A: The time path for the GDP is calculated through the complementary and particular solution. Yt = Yc +...
Q: Which of the following is NOT an input?
A: To find : Which is not input.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that the fish processor could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the water park would no longer be affected. If the fish processor uses the recycling method, then the fish processor's economic profit is $1,000 per week, and the water park's economic profit is $2,600 per week. If the fish processor does not use the recycling method, then the fish processor's economic profit is $1,700 per week, and the water park's economic profit is $1,500 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish processor's economic profit and the water park's economic profit combined) with and without recycling. Action Profit Fish Processor Water Park Total (Dollars) (Dollars) (Dollars) No Recycling 1,700 1,500 Recycling 1,000 2,600 Total economic profit is…Suppose that the fish processor could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the water park would no longer be affected. If the fish processor uses the recycling method, then the fish processor's economic profit is $1,100 per week, and the water park's economic profit is $2,600 per week. If the fish processor does not use the recycling method, then the fish processor's economic profit is $1,800 per week, and the water park's economic profit is $1,500 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish processor's economic profit and the water park's economic profit combined) with and without recycling. Profit Fish Processor Action (Dollars) Water Park (Dollars) Total (Dollars) No Recycling Recycling 1,800 1,500 1,100 2,600 Total economic profit is highest when the recycling production method is $1,500…Round off your final answer to whole #. A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5,000 p=47 + -forD>1 D D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $39 per unit. What is the number of units that should be produced and sold each month to maximize profit?
- Shakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. (a) Draw a large graph showing the Royal Mail’s average cost curve and itsmarginal cost curve. Show how many deliveries would be made, and at whatprice, if Royal Mail operated as a monopoly. Show the Royal Mail’s profit orloss on the graph.Giocattolo is a profit-maximizing firm producing toy cars, which it can produce and sell in its home country, Italy, and abroad in Spain. The average cost (AC) curve on the following graph represents Giocattolo's cost of producing toy cars within one factory, whether in Italy or in Spain. COST (Dollars per toy car) 20 18 16 14 12 10 8 4 2 0 0 10 20 30 40 50 60 70 80 QUANTITY (Thousands of toy cars) AC 90 100 Suppose that at the current market price of toy cars, the demand for Giocattolo's product is 10,000 toy cars per year in Italy and 20,000 toy cars per year in Spain. (Hint: Select each point on the previous graph to see its coordinates.) Based on Giocattolo's average cost curve, within one factory it can produce 20,000 toy cars at $ per toy car, and produce the total of 30,000 toy cars at $ per toy car. per car, produce 10,000 toy cars at
- For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. (a) Draw a large graph showing the Royal Mail’s average cost curve and itsmarginal cost curve. Show how many deliveries would be made, and at whatprice, if Royal Mail operated as a monopoly. Show the Royal Mail’s profit orloss on the graph. (b) The government makes a law restricting the price of postage to £1. Show theeffect of this policy in the…For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. New technology changes delivery firms’ technology. Now, the minimumaverage cost is £2 at 1 million deliveries and a minimum marginal cost of £1at 0.75 million deliveries. The government removes all price restrictions andallows free entry. Describe the long-term outcome for this market, using twographs, one at the firm-level and one at the…For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in thepostal business have increasing returns to scale, then constant returns to scale, andthen decreasing returns to scale. The Royal Mail’s minimum average cost is £2 at 100million deliveries and its minimum marginal cost is £1 at 75 million deliveries.The demand for postage is zero at a price of £10, and demand is 300 milliondeliveries at a price of £0. Marginal revenue is zero at a price of £10 and 150 at aprice of £0.Note: Unless otherwise stated, the numerical answers in this question do not need tobe exact but should correspond to how you have drawn your graph. The government makes a law restricting the price of postage to £1. Show theeffect of this policy in the short-run in a new, large graph. The graph shouldshow the firm’s average cost, marginal cost, marginal revenue, and consumerdemand. How much postage is bought? Show on your graph if the Royal Mailis in profit or loss, and by how much.
- Central Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery. Muffaletta Sold per Day Price (P) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC) Profit 0 $15 $12 1 14 18 2 13 20 3 12 21 4 11 23 5 10 26 6 9 30 7 8 35 8 7 42 9 6 52 10 5 78 Fill in the table What are the profit-maximizing price and quantity, and what…KidzPoses Inc., a profit-maximizing business, is the only photography business in town that specializes in portraits of small children. James, who owns and runs KidzPoses, expects to encounter an average of eight customers per day, each with a reservation price (shown in the following table). Assume James has no fixed costs, and his cost of producing each portrait is $12. Customer Reservation Price ($ per photo) 1 50 2 46 3 42 4 38 5 34 6 30 7…3. Gazelle Corp, a sports shoe firm, is currently selling 800 pairs of a certain shoe per month. It is currently charging a price of £40, but this has recently been reduced from £45, because sales were only reaching 750 units per month. Its total costs are £28,000 per month, and these have risen £1500 due to the increase in sales. a) Derive the cost and demand functions for the firm, assuming these are both linear. b) Calculate the price elasticity of demand at the current price. c) Comment on the firm's existing strategy in terms of profit maximization, without doing any calculations. d) Calculate the profit-maximizing price and output. e) Calculate the amount of profit that the firm is currently foregoing.