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Consider the production of textiles. To make textiles, it takes cotton (C, measured in pounds) and it takes labor (L, measured in man-hours). The total yards of fabric (F) produced is given by the production function F=L*(C^.5). If you currently have 100 man-hours, and 4 pounds of cotton, what is the marginal productivity of labor?
Suppose that you expect to sell about 22,000 cookbooks per month online, and assume that your overhead, technology, and equipment costs are fixed. What are your total costs What are your marginal costs
A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..
Suppose McDonalds puts up five new stores in San Francisco using exactly the same floor plan, capital equipment, and number of workersthen the long run average cost curve of McDonalds would be and the company experiences
The amount of the loan was $23,800, and it had an interest rate of 10% per year. However, because the new graduate had not built up a credit history, the bank made him buy loan-default insurance that cost 5% of the loan amount.
Maureen Laird is the chief financial officer for the Alva Electric Co., a major public utility in the midwest. The company has scheduled the construction of new hydroelectric plants 5, 10, and 20 years from now to meet the needs of the growing pop..
Cash flow estimates for a process upgrade are as follows: first cost of $40,000, annual cost of $6,000 per year, market value that decreases by $2,000 per year to the salvage value of $20,000 after the expected life of 10 years. Calculate the annu..
A firm that produces houses has a total costs function given by the following: TC = 144 + 4Q2. If the industry in which this firm operates is perfectly competitive, in the long run competitive equilibrium the number of houses the firm will produce..
Suppose that college students in your tow persuaded the town council to enact a law settings the maximum price for rental housing at $400 per month. Will this help or hurt college students who rent housing In your answer, address how this price ce..
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..
consider an industry with a dominant firm and several fringe firms. assumes that this is a free-entry industry. a dominant firm given by C(q)=800+20q+q^2. The fringe firms all have the same variable cost as the dominant firm, but doubled fixed cos..
In the long-run, outsiders enter the market since they have observed the existing firms are profitable. As more and more firms in the market, the market price is reduce to P = 12. Assuming the MC = 3 + 3Q,
A baker is considering expanding her busines by adding an additional oven to her kitchen. The new oven would cost $14,000. The baker expects the new oven to bring in additional profits of $15,800 after taking out the cost of running the oven.
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