User Account

All Pages

Supply curve determination

Assignment Help Financial Management
Reference no: EM131228764

Supply Curve Determination:

Olympia Natural Resources, Inc and Yakima Lumber Ltd., supply cut logs to lumber and paper mills located in the cascades mountain region in the state of Washington. Each company has a different marginal cost of production, depending on its own cost of land owner access, labor and other cutting costs, the distance cut logs must be shipped and so on. The MC of producing 1 unit of output measured as 1,000 board feet of lumber (where 1 board feet is 1 square foot of lumber, 1 inch thick), is

MC(Olympia)=$350+$0.00005Q

MC(Yakima)=$150=$0.0002Q

(A) Assuming these two firms makeup the entire industry in the local area, determine the industry supply curve when P<$350.

(B) Determine the industry supply curve when P>$375

Verified Expert

To find the each firm’s supply curve, we are setting P = MC For Olympia MC(Olympia)=$350+$0.00005Q

Reference no: EM131228764

Questions Cloud

Diabetes prevention in health plans : Diabetes prevention in health plans. Research a prevention program from a health plan. Criticize the selected health plan prevention program using TABLE 13-1 Components of a Strong Health Plan Prevention Program as the guideline.
The applicable defenses and the basis for courts ruling : Analyze each of the elements of this case, the applicable defenses and the basis for the court's ruling. Analyze the possible liability in this case if the sexual harasser(s) were an independent contractor versus an employee.
Choose two federal agencies involved in preventing terrorism : Choose two federal agencies involved in preventing terrorism. Contrast the roles, functions, organization, intercommunication and success of each agency. Discuss your perspective about whether these agencies should be combined.
Create your own personal definition of leadership : As you arrive to your next scheduled meeting, you meet Rae Marie, VP of Operations for MyShoppingSpreeTV, who, arrives with an unusually positive outlook about her current situation. Evaluate the strengths and weaknesses of each leadership style. Dis..
Supply curve determination : Olympia Natural Resources, Inc and Yakima Lumber Ltd., supply cut logs to lumber and paper mills located in the cascades mountain region in the state of Washington. Each company has a different marginal cost of production, depending on its own cost o..
Number of firms in labor market rises-market labor demand : A decrease in the demand for the final product will cause the firms short run labor demand curve to:  As the number of the firms in a labor market rises, the market labor demand will: The introduction of an effective minimum wage law in a monopsony m..
What is the firms marginal revenue function : The Madison Corporation, a monopolist, receives a report from a consulting firm Concluding that the demand function for its product is: What is the firm's Marginal Cost function? What is the firm's Marginal Revenue function? If per capita income is $..
About the price of gas-how the tax impacts you abilities : What are you going to do about the price of gas?  Discuss how the tax impacts you abilities and discuss other factors that will be considered when making decisions.
What is the actuarially fair price of an insurance policy : Suppose you are a consultant to a firm that has two production facilities (A and B), both of which produce the same product. Darrell has a utility function for daily income given by u(I) = 10* I . Thus, an income of $36 a day would give Darrell a uti..

Reviews

Write a Review

Financial Management Questions & Answers

  Management contract with its newly hired president

The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $25,300,000 be paid to the president upon the completion of her first 6 years of service.

  Market value and the face value of the zero-coupon bond

You will be paying $10,000 a year in education expenses at the end of the next two years. Currently the yield curve is flat at 8%. If you want to fully fund and immunize your obligation with a single issue of a zero-coupon bond, what maturity bond mu..

  Assessment for the interim assessment of international

assessment for the interim assessment of international financial managementyou are required to prepare a report of 2500

  According to the unbiased expectations theories

The Wall Street Journal reports that the rate on 9-year Treasury securities is 1.60 percent and the rate on 10-year Treasury securities is 2.15 percent. According to the unbiased expectations theories, what does the market expect the 1-year Treasury ..

  What is the nominal interest rate

Given an anticipated inflation premium of 1.40% and a real rate of interest of 4.14%, what is the nominal interest rate? Round your answer to 4 decimal places.

  Determining financial and management reporting requirements

MHC601 Accounting and Finance for Managers Assessment. Apply Accounting decision-making concepts with your company to structure your Report: Discuss the important issues in determining financial and management reporting requirements. Assess ..

  Retire bonds outstanding

Dubois Inc. wishes to accumulate $1,393,500 by December 31, 2024, to retire bonds outstanding. The company deposits $214,800 on December 31, 2014, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. the compa..

  Compressed natural gas export facilities

“Morgan Stanley has quietly filed plans to build and run one of the first U.S. compressed natural gas export facilities, the first sign the bank is plunging back into physical commodity markets even as it sells its physical oil business….. In a 23-pa..

  The pre-breakup optimal capital structure

When the Bell System was broken up, the old AT&T was split into a new AT&T in addition to seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. Do you thin..

  Ow much interest will you pay over the twenty years

You take out a $200,000 mortgage for 20 years at 6%. What is your monthly payment? What is the principle and interest on the first payment? What is the principle and interest on the twelfth payment? How much interest will you pay over the 20 years?

  Describe the modified internal rate of return

Describe the Modified Internal Rate of Return (MIRR) method for determining a capital budgeting project's desirability. What are MIRR's strengths and weaknesses?

  Consider the two mutually exclusive projects

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 359,000 –$ 45,500 1 36,000 23,100 2 56,000 21,100 3 56,000 18,600 4 431,000 13,700 Whichever project you choose, if any, you require a 14 percent return on ..

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