User Account

All Pages

Calculate the values for the four formulas

Assignment Help Microeconomics
Reference no: EM13844584

firm currently uses 40,000 workers to produce 180,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $28. The cost of other variable inputs is $500,000 per day. (Note: Assume that output is constant at the level of 180,000 units per day.)

Assume that total fixed cost equals $1,200,000. Calculate the values for the following four formulas:

Total Variable Cost = (Number of Workers x Worker's Daily Wage) + Other Variable Costs

Total Costs = Total Variable Costs + Total Fixed Costs

Total Revenue = Price * Quantity

Average Variable Cost = Total Variable Cost / Units of Output per Day

Average Total Cost = (Total Variable Cost + Total Fixed Cost) / Units of Output per Day

Complete the following:

Calculate the firm's profit or loss. Is the firm making a profit or a loss?

Explain the Short Run Shut Down Rule. Should this firm shut down? Please explain.

Provide a report to the management of the firm that discusses what should be done.

Reference no: EM13844584

Questions Cloud

Calculate total profit that will be earned by absalome plc : Calculate the total profit or loss that will be earned by Absalome PLC on this shipment if the 2050 items of the product are all sold for €1000 each and if Absalome PLC were to buy the $US 1,640,000 required.
Normalize the following table into first normal form : Normalize the following table into first normal form. The table uses one row to record information about each student. A student may take one or more electives. This table is not in 1NF. Normalize this table so it is in 1NF. In your answer, list a..
Record all necessary journal entries for the premium offer : Cracker Corporation began a special promotion in July 2013 in an attempt to increase sales. Record all necessary journal entries for the premium offer for 2013.
Prepare a summary journal entry to record sales : Prepare a summary journal entry to record sales of the extended warranties. Also prepare any other entries associated with the warranties that should be recorded during 2013.
Calculate the values for the four formulas : Assume that total fixed cost equals $1,200,000. Calculate the values for the following four formulas
The two major components of the interest rate : The two major components of the interest rate that cause rates to vary across different investment opportunities or loans are:
Calculate liability that yummy rice report at december : Calculate the liability that Yummy Rice should report at December 31, 2013.
Determine the angular velocity of the rod : Determine the velocity of the block and determine the velocity of block C  - Determine the angular velocity of the rod.
Prepare the appropriate adjusting entry to adjust warranty : Prepare the appropriate adjusting entry to adjust warranty expense on December 31, 2013. Show calculations. At the beginning of 2013, Scarlet Industries began offering a three-year warranty on its products.

Reviews

Write a Review

Microeconomics Questions & Answers

  Explains why big business typically spends

Which of the following explains why big business typically spends more on rent-seeking activities than customers?

  What proportion of annual salary will be economic rent

How much will Jacob earn? What proportion of his annual salary will be economic rent? Why won't the advertising company for which Jacobs works be able to earn an economic profit?

  What are possible opportunity cost of opening artic landa

1. Why do you suppose that firms in Artic nations are already developing specialized tanker ships and platforms for use in privately accessible Artic areas 2. What are possible opportunity cost of opening Artic lands to private extracti..

  Compute the marginal cost and average cost schedule for the

assume that a firm in a perfectly competitive industry has the following total cost scheduleoutput

  Period -expressed in base-year dollars of value

Suppose that since some base year, the the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billion to $600 billion. What is the value of REAL GDP at the end of this period ..

  Has no monetary incentive to work

Lesley is a single mother with 2 children. She can earn $10 per hour and can work up to 1,800 hours per year. However, if she does not earn any income at all, she will receive government benefits totalling $18,000 per year. For every $1 of income she..

  Unemployment is costly to employers employees and the

unemployment is costly to employers employees and the economy as a whole. what are some explanations for the

  Describe two conditions that satisfy utility maximization

The budget line gives the combinations of two goods that the consumer can purchase with a given budget. List and briefly describe the two conditions that satisfy utility maximization when selecting a combination of two goods.

  When advanta corp decided that it wished to begin charging

when advanta corp. decided that it wished to begin charging a fee to holders of its credit cards for periods during

  Do pa and la have dominant strategies

Draw up the payoffmatrix for game and do PA and LA have dominant strategies? Explain your answer.iii. What is the Nash equilibrium? Explain your answer.

  Tendency for plans that have relatively high premiums

Presume the U.S. government’s tax policies on employer health coverage were to be changed. In particular, presume health premiums paid through the employer were no longer tax exempt. In its place, the government provides a 25 percent subsidy for all ..

  Audit study conducted by bertrand and mullainathan

In most markets, majority group workers have higher average wages than minority group workers - resume audit study conducted by Bertrand and Mullainathan

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd