Multiple-Choice & True/False 30 Multiple-Choice and True/False questions. Please highlight the correct answer. Once completed submit it as an attachment to the Assignment Link: 1. The insight that both parties must be benefiting if they freely agreed to make a trade is known as the fundamental theorem of exchange. True 2. In a two-party transaction, consumers make up the demand side, while sellers make up the supply side. True 3. A recent study showed that 86% of those who filed for bankruptcy
Words: 623 - Pages: 3
The Theory of Production Production: the creation of any good or service that has economic value to either consumers or other producers. Production analysis focuses on the efficient use of inputs to create outputs. The process involves all of the activities associated with providing goods and services. Examples: a. physical processing or manufacturing of material goods b. production of transportation services c. production of legal advice d. production of education e. production of
Words: 4072 - Pages: 17
CASE 2 1. Which mode of transport should Jack undertake? Jack should undertake Rail as his mode of transport. We are given that the unit cost of transport for both rail and ship are the same. | Vizag | Goa | Mangalore | Mumbai | 50 | 23 | 61 | Chennai | 48 | 25 | 41 | Cochin | 59 | 66 | 63 | But for Ship there is an additional initial investment and for Rail there is VAT charges. This increases the cost of transportation. The new Cost for Ship is: | Vizag | Goa | Mangalore
Words: 404 - Pages: 2
Caitriona Leone & Jordan Crystal 15 October 2012 Giberson’s Glass Studio 1. Come up with an analysis that might help save the business. Edward Giberson is facing a problem with his rapidly deteriorating glass studio. He is not making profit, which is from a combination of not pricing his products correctly and spending too much on costs. I first figured out his total revenue for the year. Giberson’s year is actually made up of 40 weeks or ten months. The following table is what makes up his
Words: 1126 - Pages: 5
Chapter 8 Summary: Location Strategies Team #: 3 Team Members: Daniel Coughlin Joel Nemr Jennifer Ogle Operations Fundamentals Prof. Riaz Khan 63.501.201 Date: 04/11/2012 Location Strategies Strategic Importance of Location Overview As markets continually expand, the location of a business becomes increasingly important. Location choice can provide a company with distinct advantages. The ideal location should provide an overall maximum benefit to the company, factors considered
Words: 2069 - Pages: 9
Selected Answer: total fixed cost Correct Answer: total fixed cost • Question 6 2.5 out of 2.5 points At the Punjab Bakery, two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour. The marginal product of the third worker is Answer Selected Answer: 4 cakes and the average product for three workers is 6 cakes. Correct Answer: 4 cakes and the average product for three workers is 6 cakes. • Question 7 2.5 out of
Words: 1818 - Pages: 8
Final Business Proposal Final Business Proposal In 2009, Colgate-Palmolive Company introduced Colgate Wisp, a disposable and portable on-the-go toothbrush with built-in toothpaste that promises a just-brushed, clean feeling (Colgate-Palmolive Annual Report, 2009). The product performed well for a few months, but loses its grip in the market scene since then. There was a market plunge for Colgate Wisp and the revenue plummet. The goal of the firm is to boost its sales once more, and be able
Words: 1886 - Pages: 8
services and information services. In each of these cases the relevant technologies involve high fixed costs, significant joint costs and low, or even zero, marginal costs. Setting prices equal to marginal cost will generally not recoup sufficient revenue to cover the fixed costs and the standard economic recommendation of "price at marginal cost" is not economically viable. Some other mechanism for achieving efficient allocation of resources must be found. The outcome of this investigation is that (i) efficient
Words: 2467 - Pages: 10
Econ 101: Intro to Microeconomics Spring 2012, Handout 8 Solutions More on Monopolies 1. A monopoly faces a market demand curve given by P = 42 − Q. Its marginal cost curve is given by M C = Q. (a) Find an equation for the marginal revenue curve. Graph market demand, marginal revenue, and marginal cost for this monopoly. Double the slope of the demand curve to get the MR: M R = 42 − 2Q. The graph should show a line twice as steep as the original demand curve, but with the same price intercept
Words: 2233 - Pages: 9
enter or exit the market. Revenue of a Competitive Firm For a competitive firm, the price it receives does not depend on the quantity it chooses to sell. Marginal revenue equals the price of its output. For example, if the price is $6, then the total revenue of selling 10 units is $60 and the total revenue of selling 11 units is $66. Marginal revenue, ªTR/ªQ = (66-60)/(11-10) = $6. Profit Maximization Obviously, both revenue and cost considerations determine the profit maximizing output choice
Words: 1679 - Pages: 7
