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Suppose Honda's total cost of producing 4 cars is $225,000 and its total cost of producing 5 cars is $250,000
a) What is the average total cost of producing 5 cars
b) What is the marginal cost of the fifth car?
c) Draw the marginal cost curve and the average total cost curve for a typical firm,and explain why these curves cross where they do
Tanya operates a home business importing sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on advertising, accounting services and u..
Assume that the GNP is Php 10 billion, and the government budget deficit is Php 200 million. The consumption expenditures is Php 3.8 billion and the trade deficit is Php 100million. a) How large is the savings (S)
A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the ..
Suppose a firm operates as a price taker in a perfectly competitive industry. The firm's Total Cost function is given by TC = a + bQ +cQ2. Therefore the firm's marginal cost is given by b +2cQ. Find an expression for the Breakeven Price.
Other things equal, in which year was seignior age revenue greater? (Assume that asset holders correctly anticipated the path of inflation.)
A firm's total revenue is given by; TR= 30Q-Q^2 Its total cost function is given by TC= Q^2+10Q+10 a.find the profit maximizing output b.what price will the firm charge to maximize its profits
A mega agricultural operation is considering the purchase of a new tractor. 1. Which tractor is better using the Net Present Worth (NPW) method 2. Which tractor is better using the Internal Rate of Return (IRR) method
Research suggests that taxing pizza and soda would reduce the incidence of obesity in the U.S.A. Suppose you were required to choose between a price ceiling and a floor price to achieve the same result.
The USA has persistently reported large current account deficits on its balance of payments.
If policy succeeds in maintaining full employment, what happens to inflation?
What sum should you deposit into an account to yield 20 year end payments, starting with $10,000 at the end of the first year and increasing by 4% each year at an interest rate of 8% compounded quarterly.
Suppose that an economy has the Phillips curve p = p-1 - 0.5(u - un), and that the natural rate of unemployment is given by an average of the past two years' unemployment: un = 0.5(u-1 + u-2).
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