Trapper John, the (faux) fur trader, has determined his production function for acquiring pelts is :… Show more Trapper John, the (faux) fur trader, has determined his production function for acquiring pelts is : q=2L^(1/2). q= number of pelts acquired per day and L, is the number of hours his employees spend hunting and trapping. John pays his workers $8 per hour. John’s fixed costs are $50. 1) Determine John’s total cost, variable cost and fixed cost equations. (please show all work!) 2) Determine John’s average total cost, average variable cost, and marginal cost equations. (please show all work!) 3) At what output level is ATC minimized? (please show all work!) 4) At what price are economic profits equal to zero? (please show all work!) • Show less

In a perfectly competitive market, assume every firm faces the same short run total cost curve: TC=… Show more In a perfectly competitive market, assume every firm faces the same short run total cost curve: TC= 2q^2 + 10q + 200. The market demand curve is :Qd = 800-8P. Given perfect competition, if this industry is in long run equillibrium: 1) Find the level of output produced by each firm 2) Find the market price of the output. 3) Find the total industry output adn the number of firms in the market. 4) How much economic profit does each firm in this market make? • Show less

The fir… Show more Suppose a firm in a competitive market has the following production function : q= L^0.5K^0.5 The firm has the following info: K=25, price of capital “r”=4 going wage rate “w”=50 1) This function exhibits constant returns to scale, violate the law of diminishing returns? 2) This firm sells in a competitive market at a price of $60 unit per unit. Find the profit maxiizing level of output, total revenues, total costs and economic profits. 3) Find this firm’s short run supply function 4) At what price and output level will this firm just break even? • Show less

alternative to provide… Show more A firm desires to determine the most economic equipment-overhauling schedule alternative to provide for service for the next nine years of operation. The firm’s real MARR is 8% per year, and the inflation rate is estimated at 7% per year. The following are alternatives with all the costs expressed in real dollars: a. Completely overhaul for $10,000 now b. A major overhaul for $7,000 now that can be expected to provide six years of service and then a minor overhaul costing $5,000 at the end of six years. c. Aminor overhaul costing $5,000 now as well as at the end of three years and six years from now. • Show less

You purchase a duplex on April 15, 2000. You plan to live in one side and rent the other side. The r… Show more You purchase a duplex on April 15, 2000. You plan to live in one side and rent the other side. The rental side is placed in service the day you buy it. Depreciation only applies to the rental half so the remaining numbers correspond to that portion. The purchase price for the rental protion was $60,000. In your research, you determine the land is worth $12,000 of that amount and the appliances and carpeting are worth $3000 of the purchase price. When doing your taxes, you may use IRS Publication 527 to determine the appropiate depreciation amount each year. Assume your marginal income tax rate is 25% every year (capital gains rate is then15%). Assume taxes are refunded or paid on April 15th each year, so that the savings from April through Dec of 2000 is realized on April 15, 2001 (EOY 1). You continue to rent until you sell on April 15, 2007 for $75,000. Use an MARR of 6%. A. For each Year, EOY 1-EOY 8 calculate the following: the depreciation amount of each asset class, the total depreciation each year, the book value for the property at the end of each year, and the amount of tax saved using the deprecication expense to reduce income each year. B. When the property is sold, you realize a capital gain from two protions: First, the book value was lowered by the total depreciation taken to date. Calculate the capital gain due to the total depreciation amount and the capital gain tax owed due to this amount. Second, the rest of the gain comes because the sale price was higher than the purchase price. Calculate the capital gain and the tax owed on this portion of the gain. C. Draw a cash flow diagram for just the tax amount due to the depreciaiton, including the gain from this portion at EOY 8. Calculate the present worth of this cash flow. This is the amount gained by depreciating the property. D. Draw the cash flow diagram for all the amounts, including the purchase (EOY 0), the tax saved each year, the sale (EOY 7), the capital gain tax (EOY8). Calculate the present worth of this cash flow. Calculate the annual worth of this cash flow. This is the amount of net rental income (rent-expense) needed each year to make the property a good investment. • Show less

1- Is an oligopolist more or less likely to engage in strategic decision making compared to a monop

is alwa… Show more With a natural monopoly, the minimum price a single firm must charge to make profit: is always higher than the price two or more firms would have to charge is half the price two or more firms would have to charge. is lower than the price two or more firms would have to charge. is equal to the price two or more firms would have to charge. • Show less

1- What are the “monopolistic” and the “competitive” elements of monopolistic competition? A) M

I ONLY NEED THE ANSWER FOR PART 4, BUT I POSTED THE WHOLE THING INCASE YOU NEED TO READ SOME OF THE … More »

Describe what would happen if an outside agency determined the prices eBay could charge.