Two firms producing identical products may merge due to the existe Multiple Choice economies of scope. economies of scale. cost complementarities All of the statements are comect
Q: In merging with Copa, WestJet sought to acquire an advantage from operating with economies of scale.…
A: From the mergers, the firms would together behave as the monopoly firms earning monopoly profit. The…
Q: Marginal cost is plotted (as an approximation) halfwa between successive units of output. a. True O…
A: Total cost: Total cost refers to the cost that includes fixed cost and variable cost. Here, fixed…
Q: Total variable cost is 0 at zero level of production True/Falss
A: # Total cost incurred by the firm is the sum of both fixed and variable costs. Total.fixed cost is…
Q: If a firm's average total cost remains constant as output grows, the firm has constant returns to…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: Assume a learning curve following the power law. If you double the initial cost c(1) of aproduct,…
A: Learning curve: - it is a graphical representation of cost and output over a time period; it shows…
Q: At a recent board meeting, the president and CEO got into a heated argument about whether to shut…
A:
Q: When graphing the NTR and BL lines: Multiple Choice Both begin above the graph's origin. The NTR…
A: The amount collected after the relevant tax has been deducted from gross income is referred to as…
Q: Chuck owns a factory that produces leather footballs. His total fixed cost equaled $86,000 last…
A: Total cost is defined as the sum of all the expenses being faced by the producer in order to produce…
Q: The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British…
A: It is given that the firm produces two different varieties of coffee which includes the A and B.…
Q: The vertical distance between ATC and AVC measures: a. marginal cost. b. total fixed cost. c.…
A: Total cost of a firm includes Total variable cost and total fixed cost. In the short run fixed cost…
Q: ution at Hewlett Packard well-managed organizations do not always work as efficiently and…
A: Answer 1: The team is expected to oversee and design the complex project because of the…
Q: EXAMPLE 1.1 Alpha Associates has the following details: Fixed cost = Rs. 20,00,000 Variable cost per…
A: The term break-even refers to the quantity at which the firm is neither in profit nor in the loss.…
Q: Which scheduling method would be inappropriate for the product named? spring-blooming bulbs -…
A: A particular technique that one use for constructing the schedule like an employee, contract,…
Q: If total revenue is $64,000 and accounting profit is $12,000 Find explicit cost
A: According to the above mentioned question, we have Total revenue = $64,000 Accounting profit =…
Q: The effect to break-even sales when fixed costs increases while sales price and variable costs…
A: Break even occurs when total revenue is equal to the total costs. Break even sales quantity= Fixed…
Q: Shopify, a well known Canadian firm is currently maximizing profit. If that is the case, Shopify…
A: Given: Canadian firm is maximizing profit.
Q: Like Loyola, many universities have either a college football program or a basketball program.…
A: Let us analyze the given scenario by understanding the given alternatives. Economies of scope and…
Q: You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you…
A: Sunk cost is the cost that already made and cannot be recovered. In the decision making process,…
Q: At zero output the total cost is 10 dollars and 20 dollars at one unit of output, the total fixed…
A: Total cost is the sum of fixed cost and variable cost in which fixed cost is independent of output…
Q: Polo Golf Shirt Pricing The setting is a Ralph Lauren outlet store, and the product line is Polo…
A: Operating profit: The operating profit of a firm is the overall earnings from its core business…
Q: GIANTS Maintain Price Lower Price TITAN Maintain Price ( ① M , ② M )…
A: In game theory, the payoff matrix is a tabular representation where the strategies and the…
Q: he variable cost to make a certain product is $71 per unit. Research indicates that the lowest price…
A: Given, VC = $71 per unit Lowest price = $156
Q: If explicit cost is $300, implicit cost Is $220 and total revenue is $700 Find Economic profit
A: The information being given is:- Explicit cost = $300 Implicit cost = $220 Total revenue = $700 We…
Q: The ideal number of VI to be combine with FI is determined by Group of answer choices a. marginal…
A: Option d is correct.
Q: The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table.…
A: Given: Fixed cost=$500 Output Total Variable Cost 1 $ 400 2 720 3 1,000 4 1,400 5…
Q: The law of diminishing returns or variable proportion is only applicable in the
A: Law of Diminishing returns or variable proportion states that in the short run, when more of…
Q: Average fixed cost Multiple Choice may be found by adding average variable cost and average total…
A: Average fixed cost:- Average fixed cost is fixed cost of production per unit of output.…
Q: Turner Overdrive produces 670,000 transmissions with a fixed cost of $8.2 million. It's average…
A: Average fixed cost is the fixed costs of production divided by the quantity of output produced.…
Q: A publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy…
A: Break even Point : Break even point can be defined as a point below which no producer will sell as…
Q: Cluster Question Prompt Consider corporations that use advertising firms to develop marketing…
A: Profit is measured as difference between Total revenue and total cost and there two two types of…
Q: When average cost decreases as output increases, Group of answer choices marginal cost is below…
A: The economies of scale curve is a long-run average cost curve since it permits all variables of…
Q: A company is planning to manufactureand market a new two-slice electric toaster. After conducting…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 37This is the penultimate step of the new product development process when feedback from consumers…
A: This type of set up where the some consumers are allowed to play before hand while launching in the…
Q: A cookie company can produce 500 cases of chocolate chip cookies a week at a total cost of $3,000…
A: According to the question, it is given that : A cookie company can produce chocolate chip cookies…
Q: XYZ Company is specialized in mangoes distribution in the city of Muscat. Sales are 450 boxes (unit)…
A: Price range Quantity ordered Price per unit Initial price 1 to 199 OR 5 Discount price 1 200 to…
Q: In merging with Air Jamaica, Caribbean Airlines sought to gain an advantage from operating with…
A: Economies of scale: When a firm produces at a very large scale resulting in a fall in the average…
Q: In the long run, if 1,000 units are produced at a cost of $8,000 and 1,200 units at a cost of…
A: Given that, 1,000 units are produced at a cost of $8,000 and 1,200 units are produced at a cost of…
Q: produce instructional materials for disabled children in public school districts. The owner rents…
A: Total fixed cost is independent of output produced.
Q: Cell C also had to acknowledge that it could not outspend Vodacom and MTN on network investment.…
A: Cost: Cost is the financial worth that an organization has spent to create something. In a business,…
Q: The Framing Gallery frames posters and has total fixed costs of $1,000. The Framing Gallery is…
A: Answer: Any production activity composed of fixed costs and variable cost, fixed cost remains fixed…
Q: Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum…
A:
Q: A marginal cost fiction C'(q) is given in the figure below. If the fixed costs are $10,000,…
A: Marginal cost is defined as the cost of producing an additional unit of the output. Marginal cost is…
Q: c) In merging with Air Jamaica, Caribbean Airlines sought to gain an advantage from operating with…
A: The airlines when combined would result in the formation of cartel and merging forms a monopoly…
Q: Refer to the above graph to answer this question. If the price of the product is $30, what are the…
A: Break even point refers to the point where firm earns normal profit that means TR=TC or P=AC Given…
Q: Economies of Scale Constant Returns to Scale Diseconomies of Scale han 400 bikes per month en 300…
A: Economies of scale occurs when there are certain cost effective advantages are accuring to a firm…
Q: Wiebe Trucking, Inc., is planning a new warehouse to serve the west. Denver, Santa Fe, and Salt Lake…
A: We find that Salt Lake City and Denver intersect each other at some quantity X. Before quantity X,…
Q: Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa…
A: Total Cost(TC) is the overall cost(C) that is incurred during the production process. The total…
Q: AC and AVC can intersect each other. True/False
A: Average cost and average variable cost are both the average values of total cost and total variable…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- How does Nokia's wrong strategic response to changing market conditions cope with economic decision's concepts, such as rational-actor paradigm, fail to create value, sunk cost/hidden cost fallacy, adverse selection, extent decision, elasticity, etc.?EconomicBoth the subpartsHow are the 10 decisions altered to build two distinct strategies in the same industry?
- Scenario One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex Specialty Products as a brand manager, his new boss told him, “We don’t have a budget for new-product development. We just monitor our competitors’ new-product introductions and offer knockoffs of any that look like they will be successful.” Is this practice ethical?PROBLEM SOLVING Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output (in packs) AFC (P) AVC (P) ATC (P) MC (P) 60.00 45.00 42.50 1 105.00 45.00 2 30.00 72.50 40.00 20.00 35.00 40.00 37.50 60.00 52.50 4 15.00 30.00 12.00 37.00 37.50 49.00 47.50 35.00 40.00 10.00 7 8.57 38.57 47.14 45.00 8 7.50 6.67 40.63 48.13 55.00 65.00 75.00 50.00 9 10 43.33 46.50 6.00 52.50 1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack? A. Assuming that the product price is P42 per pack, answer the same questions in letter A. B. Because of increasing sellers of masks in the market, the product's price further decreased to P32 per pack. Again, answer the same questions in letter A.…Please no written by hand solution Considerthe following problem. There are five firms producing a homogenous good and competing in quantities simultaneously. The demand function for this good is given by D(p) = 100−p, where p denotes price. The marginal cost is the same for all firms and equals 40 Answer the following questions. (a) Compute the equilibrium quantities and profits of each firm. (b) Now suppose that two of these firms (say firms 1 and 2) want to merge. (The remaining firms stay unchanged.) Merging, however, is costly. To merge, each merging firm has to pay a fixed cost F. Determine the highest fixed cost F that the two firms would be willing to pay in order to proceed with the merger.
- Compare the average total cost and the marginal cost and explain the relationship Describe the methods that can be used to dertermine where profit is maximized L Q MP MC TC ATC 0 0 200 1 20 20 5.00 300 15 2 50 30 3.33 400 8 3 90 40 2.50 500 5.56 4 120 30 3.33 600 5.00 5 140 20 5.00 700 5.00 6 150 10 10.00 800 5.33 7 155 5 20.00 900 5.81If competition places discipline on costs, motivating firms to innovate and find more cost-effectiveways to produce, explain why in some markets asingle firm without competitors will produce ata lower cost than if the firm faced competition.Answer all as they are subparts and get like don't upload any graph. Hand written solutions are strictly prohibited.
- Tlite and Brite produce lamps which they sell for $40.Tlite has fixed cost of $8000 less than Brite and average variable cost of $33, which is 10% more than Brite. Tlite has a break even output which is 15% less than Brite, and produces 25% less revenue than Brite. Tlite also makes $12000 less profit then Brite. Calculate the outputs of both the firms Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.2. Two cereal firms that set prices and sell differentiated products propose to merge. Firm 1sells CrunchyCrunch for a price of $10 with a marginal cost of $6. Firm 2 sells FibryFibre for aprice of $12 and a marginal cost of $6.(a) When the price of CC rises, 20% of its lost demand goes to FF. What is the marginal costreduction for CC that is required to offset the upwards pricing pressure on the CC price?(b) You are employed as a consultant by the merging firms. You know that the DOJ knowsthat the marginal cost of FF will fall by 50 cents as a result of the merger, but that the agency isunsure of the diversion between FF and CC. How small will you need to claim that the diversionis in order for there to be no net upwards pricing pressure on the CC price?Explain it all three subparts
