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In this module, it is demonstrated that some times extensive diseconomies of scale, say, due to high transportation costs, would require that the firm produce its product in a multiple of plants. Suppose a beer brewing company has determined that its total production cost is: TC = 1000 Q - 1.2 Q2 + 0 .004Q3 where Q is its annual output measured in metric tons.
A. The average hauling (freight) cost is $0.8Q; that is AFC = 0.8Q. Write the firm's average aggregated cost equation.
B. Now suppose the firm is facing the following market demand:
Q = 760,000 - 10 P
Determine the optimal number of plants that the firm should have to take full advantage of the market demand.
C. Calculate the firm's profit.
Why do economic include only final good and services in measuring GDP for a particle year! Why don't they include the value of the stock and bonds bought and sold! Why don't they include the value of the used furniture bought and sold?
Consider a bond market. Show graphically and explain how each of the following changes would affect bond price, quantities traded and yield.
Suppose the government were to provide a $2 per hour subsidy for families who purchases child care, regardless of work or wage status. This will..
National level or aggregate level data and firm-level data are self explanatory. I have seen certain papers on productivity analysis as well as other topics which refer to "establishment-level" data. Can someone please explain what is meant by this t..
Walmart is laying off cashiers, and increasingly adopting the policy where customers must use self checkout or pay a fee. Jason Clarke is the manager of a Walmart. There are 20 cashiers and 8 self-checkout stations in this store to serve 1000 custome..
Suppose a firm has an expected ROE of 10%. The firm reinvests 75% of its earnings. What is its growth rate? Assume this firm pays a current dividend of $4.25. You expected to sell the stock at the end of 3 years for $85.
Calculate the cross-price elasticity of demand. Given the elasticity you calculated, did it make sense for supermarket to raise its price.
Which of the following is a method for the Federal Reserve to control the supply of money? Open-market operations refer to the Federal Reserve: What determines the weights for calculating the Consumer Price Index?
Suppose the firms divide the market into two areas of equal size and assign each firm one of the areas. Each firm agrees to sell only in its assigned areas. Will the arrangement generate a successful cartel?
You can suppose any single peaked preference which you want and Characterize the equilibria of the model.
Where aH and bH are her consumption of ale and bread. George and Harriet are each endowed with 4 units of ale and 4 uits of bread. Find the market-clearing price (which is a messy fraction).
Analyze the current health care delivery structure in your state (Tennessee). Compare and contrast the major determinants of healthcare market power. Analyze the main competitive forces in the your healthcare delivery system in your state.
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