Suppose that a company has determined that a 70% experience curve accurately describes the evolution of its production costs for a new line. If the first unit costs $100 to produce, what should the 1,000th unit cost based on the experience curve?

A company produces 1200 widgets a week at a total cost of $15,000 and 1800 widgets a week at a total cost of $21,000. Find the company's weekly fixed costs and the marginal cost per widget.

In economics, utility is a measure of satisfaction or usefulness. The utility of wealth could therefore be thought of as how happy you are as a function of the amount of wealth you possess. When applied to economic measurements, the word "marginal" describes the change corresponding to an increase in the measured quantity. The marginal utility of wealth is how much your happiness increases as your wealth increases. The Law of Diminishing Marginal Utility states that as you consume more, your marginal utility decreases; that is, the more you have of something, the smaller the impact getting more of it affects your happiness. If w is your wealth, and T(w) is your utility of wealth, your marginal utility of wealth at w is M(w) = lim h→0 T(w+h)-T(w) h and the rate at which your marginal utility of wealth is changing at w is M (w+h) — M(w) h C(w) = lim h→0 Suppose w is measured in 10s of thousands of dollars, and T(w) wealth. - 300w w + 1 is the utility of your (a) Find a closed form…

Complete the following sentence: In a linear cost function, the marginal cost is the  --- abstract additional fixed cost per item.

David is curious about the effects of housing wealth on household consumption. Now he has the China Family Panel Study dataset. In this dataset, respondents are asked to report their housing wealth and monthly consumption. (2) In May 2006, China issued a policy to lower the percentage of down payment for purchasing units with floor areas less than or equal to 90 m² from 30% to 20%. It caused a higher demand and thus a higher price for houses smaller than 90 m². How can David use this policy to identify the effect of housing wealth on consumption? Please state clearly about the identification strategy can be used and its logic. (3) In terms of the identification strategy you provide in the above question (2), what is the assumption to make sure that it is valid? How would you test the assumption(s)? (4) What is the limitation of this empirical strategy?

A firm faces the following total revenue and total cost functions: TR = 150 - 0.20² and TC = 60 + 0.1Q + 0.05Q². Determine the profit maximising level of output. 39.8 19.8 20.8 29.8

Let’s assume that in Kansas, a family farmer sells wheat in a perfectly competitive market. After increasing the production of wheat from 220 bushels to 240 bushels, the total revenue of the farmer increases from $6,600 to $6,700. What was the marginal revenue of this increase in production in dollar?

A surfboard manufacturer lost $500,000 last year during a recession. Total revenue was $5,000,000 and total variable costs were 40% of sales. The production facility ran at 50% capacity. The production manager wants to know the following: a. What is the percent capacity required to break even? b. When the economy recovers this year, if the plant runs at 100% capacity what net income could the company realize? c. There is a possibility that sales could be so strong this year that the plant may be required to run at 120% capacity by offering a lot of overtime to its production workers. This would result in total variable costs rising by 35%. On a strictly financial basis, should the production manager plan to exceed capacity or should he advise top management to freeze production at 100% capacity? Justify your answer. Answer Solution- 9a. 58.3% 9b. $2,500,000 9c. $3,100,000

A certain company grants a six-month investment product that offers to pay its clients 8% the first month, 12% the second month, 11% the third month, 8% the fourth month, 14% the fifth month and 15% the sixth month. What would be the value of the average rate that the customer will receive? Write your answer to 2 decimal places.

A tour guide charges a price of $600 per person for a jungle tour and typically 8 persons sign up for the tour. One time the guide offers the jungle tour at a discounted price of $525 per person and finds that 11 persons sign up for the tour. Assuming the demand trend is linear and that for each price drop of $25, one more person is interested in the tour, what size of group a will produce the largest revenue for the tour guide? I