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maria pervez
Answers (2)
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Assume that both car manufacturers produce high quality vehicles. If Honda annually produces 51 cars per worker, whereas Toyota produces 69 cars per worker, it can be said that in terms of labor productivity,
A) Toyota is both more effective and more efficient than Honda.
B) Honda is both more effective and more efficient than Toyota.
C) Honda is more effective but Toyota is more efficient.
D) Toyota is more effective but Honda is more efficient.
E) both are inefficient.
A) Toyota is both more effective and more efficient than Honda.
B) Honda is both more effective and more efficient than Toyota.
C) Honda is more effective but Toyota is more efficient.
D) Toyota is more effective but Honda is more efficient.
E) both are inefficient.
On Sep 28, 2024
A
MP
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Conigan Box Company produces cardboard boxes that are sold in bundles of 1000 boxes. The market is highly competitive, with boxes currently selling for $100 per thousand. Conigan's total and marginal cost curves are:
TC = 3,000,000 + 0.001Q2
MC = 0.002Q
where Q is measured in thousand box bundles per year.
a. Calculate Conigan's profit maximizing quantity. Is the firm earning a profit?
b. Analyze Conigan's position in terms of the shutdown condition. Should Conigan operate or shut down in the short run?
TC = 3,000,000 + 0.001Q2
MC = 0.002Q
where Q is measured in thousand box bundles per year.
a. Calculate Conigan's profit maximizing quantity. Is the firm earning a profit?
b. Analyze Conigan's position in terms of the shutdown condition. Should Conigan operate or shut down in the short run?
On Sep 22, 2024
a.Given the competitive nature of the industry, Conigan should equate P to Mc.100 = 0.002Q
Q = 50,000
To determine profit:
π = TR - TC
TR = PQ
TR = $100 ∙ 50,000
TR = 5,000,000
TC = 3,000,000 + 0.001(50,000)2
TC = 3,000,000 + 2,500,000
TC = 5,500,000
π = 5,000,000 - 5,500,000
π = -500
Conigan is losing $500,000 per year.
b.To determine if the firm should operate or shutdown, we must compare P to AVc.AVC =
TVC = TC - TFC
TVC = 5,500,000 - 3,000,000
TVC = 2,500,000
AVC =
= $50
AVC = 50; P = $100
The firm should operate since P > AVC.
Q = 50,000
To determine profit:
π = TR - TC
TR = PQ
TR = $100 ∙ 50,000
TR = 5,000,000
TC = 3,000,000 + 0.001(50,000)2
TC = 3,000,000 + 2,500,000
TC = 5,500,000
π = 5,000,000 - 5,500,000
π = -500
Conigan is losing $500,000 per year.
b.To determine if the firm should operate or shutdown, we must compare P to AVc.AVC =
TVC = TC - TFCTVC = 5,500,000 - 3,000,000
TVC = 2,500,000
AVC =
= $50AVC = 50; P = $100
The firm should operate since P > AVC.