Economics Answers

3) You've been hired by an unprofitable firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you don't know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $30. Should the firm continue to operate at a loss? Carefully explain your answer.

Why is the demand curve facing a monopolistic downward sloping while the demand curve facing a perfectly competitive firm is horizontal?

Explain why a perfectly competitive firm would or would not advertise?

A monopolistic firm operates in two seperate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows;

Market A : P=15-Q Market B: P=11-Q

A company estimates its total cost function : TC=4Q

a)Quantity,total revenue and profit when company maximizes its profit and charges the same price in both markets

b)Quantity,total revenue and profit when the company charges different prices in each market and maximizes its total profit

How can the world food supply be fairly distributed across countries?

Which budgeted statement is the bank account reconciled to? What does reconciling the bank account reveal in regard to the cash flow budget?

what category of budgets are the governance board more likely to be interested in?

with a long-term view, which specific two budgets are the most relevant to the governing board and for what reason?

A new governance board member is constantly asking the accountant questions about the motor vehicle expenses that are constantly over budget. They blame one of the business managers who they dislike and point to the fact that the manager has an unnecessary sports pack on their car. What type of budget does the motor vehicle expense belong to? Who is responsible for this budget? What steps would you take if you were the accountant?

How does revenue forecasting affect the rest of the budget process?

What are the limitations of revenue forecasting technique?

How can this be countered?

What might be a result if the Federal Reserve increased reserve requirements too rapidly?

. Describe the performance of the U.S. economy during President Obama’s two terms in office as it relates to economic growth. What are the consequences if the new normal growth rate is significantly lower than the trend rate of growth that the U.S. economy experienced in the 20th century? Gather relevant economic statistics, such as the growth rate of real GDP, that have been introduced in this course to support your case