1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Virty [35]
3 years ago
12

Suppose there are 1.000 identical firms producing diamonds. Let the total cost function for each firm be given by C(q, w) = q2 +

wq, where q is the firm's output level and w Ls the wage rate of diamond cutters. If w = 10, what will be the firm's (short-run) supply curve? What is the industry's supply curve? How many diamonds will be produced at a price of $20 each? How many more diamonds would be produced at a price of $21? Suppose the wage of diamond cutters depend on the total quantity of diamonds produced. and suppose the form of this relationship is given by w = 0.002Q where Q represents total industry output, which is 1,000 times the output of the typical firm. In this situation, show that the firm's marginal cost (and short-run supply) curve depend on Q. What is the industry supply curve (in the long-run)? How much will be produced at a price of $20? How much more will be produced at a price of $21? What do you conclude about he shape of the short-run supply curve?
Business
1 answer:
alexandr402 [8]3 years ago
8 0

Answer:

For the price of $20 = $3,333.33

For the price of $21 = $3,500

Kindly go through the explanation for the other answers required.

Explanation:

(a)

C = q2 +wq = q2 + 10q

Firm's short run supply curve is its marginal cost (MC) schedule.

MC = dC / dq = 2q + 10

So, supply curve is: p = 2q + 10

Or,

q = (p - 10) / 2 = 0.5p - 5

Total industry supply, Q = 1,000 x q = 500p - 5,000

p = (Q + 5,000) / 500 [Industry supply curve]

When p = 20, Q = 500 x 20 - 5,000 = 5,000 [Number of diamonds supplied]

When p = 21, Q = 500 x 21 - 5,000 = 5,500

So, when P = 21, 500 more diamonds will be supplied.

(b)

(i)

If w = 0.002Q then

w = 0.002 x (1000q) [Since Q = 1000q]

w = 2q

C = q2 +wq = q2 + (2q)q = 3q2

So, MC = dC / dq = 6q

MC = 6 x (Q / 1000)

So, MC depends on Q.

(ii)

Long run supply schedule is when price = MC

p = 6q = 6 x (Q / 1000)

p = 3Q / 500 [Long run industry supply schedule]

(iii) When p = 20, Q = p x (500/3) = 20 x 500 / 3 = 3,333.33

(iv) When p = 21, Q = p x (500 / 3) = 21 x 500 / 3 = 3,500

(v) Short run supply curve is the positive part of MC.

p = 6q

Therefore, the SR supply curve is a straight line from origin, sloping upwards.

You might be interested in
If real GDP​ increases, A. the money demand curve shifts to the right. B. there is a movement down along a stationary money dema
qaws [65]

Answer:

A. The money demand curve shifts to the right.

4 0
3 years ago
Scott Company has 5 sales employees, each of whom earns $16,000 per month and is paid on the last working day of the month. Each
pogonyaev

Answer:

Scott Company

Journal Entries:

January 31:

Debit Payroll $80,000

Credit Salaries Payable $57,200

Credit Payroll Taxes Payable $22,800

To record the salaries and taxes payable.

Debit Salaries Payable $57,200

Debit Payroll Taxes Payable $22,800

Credit Cash $80,000

To record the payment of the salaries and taxes.

Explanation:

a) Data and Calculations:

Number of sales employees = 5

Salary per month = $16,000 each

Withholding taxes:

FICA social security taxes of 6.2% = $992

Medicare taxes  1.45% = $232

Federal income tax = 16% = $2,560

Monthly Medical Insurance = $440

FUTA = 0.8% of the first $7,000 = $56

SUTA = 4.0% of the first $7,000 = $280

Total withholding tax deductions = $4,560

Payroll total ($16,000 * 5) = $80,000

Withholding taxes for each:

FICA social security taxes of 6.2% = $992 * 5 - $4,960

Medicare taxes  1.45% = $232 * 5 - $1,160

Federal income tax = 16% = $2,560 * 5 - $12,800

Monthly Medical Insurance = $440 * 5 - $2,200

FUTA = 0.8% of the first $7,000 = $56 * 5 - $280

SUTA = 4.0% of the first $7,000 = $280 * 5 - $1,400

Total withholding tax deductions = $4,560 * 5 = $22,800

Net pay = $57,200

5 0
3 years ago
Libraries and the registrar/bursar are examples of resources that
Nitella [24]

The correct option is B. Libraries and the registrar/bursar are examples of resources that may be accessible online.

You will converse with peers on the subjects covered in a session on the discussion board.

<h3>What are study resources?</h3>

Study aids are available to support students in achieving their academic and non-academic objectives. Making use of these beneficial hints can help you get the most out of your education. While balancing life as a student, time management and access to study materials is crucial.

Learning Materials Materials are things that are employed in the teaching of a subject. The "Primary Material Type" field and the "Secondary/Other Material Type" field definitions for the material types that can be chosen during upload are listed below.

The best choice is B. Online resources include the registrar/bursar and libraries, for instance.

Learn more about Study Resources here:

brainly.com/question/13378068

#SPJ1

7 0
1 year ago
Kimberly has been planning to purchase a digital camera for a long time. She finally makes the purchase and is happy because she
WARRIOR [948]

Answer: Option A      

       

Explanation: In simple words post decision resonance refers to the feeling of regret that one gets after making  decision that the choice they made was not correct.

This theory suggests that the level of regret that one feels depends on two factors, the net desirability between the option chooses and option not chooses,  the importance of the decision made in the Decision makers life.

In the given case, Kimberly bought a camera and now think she did not make right choice. Hence from the above we can conclude that the correct option is A.

3 0
2 years ago
Del is buying a $250,000 home. He has been approved for a 5.75% mortgage. He was required to make a 15% down payment and will be
alukav5142 [94]

Answer:

Del is expected to prepaid to pay $535.62 in prepaid interest at the closing.

Explanation:

The down payment of 15% is $250000*15%=$37500

The balance of mortgage net of down payment=$250000-$37500

                                                                               =$212500

Interest yearly=$212500*5.75%=$12,218.75

A year interest divided by 365days give one day interest.

A day interest=$12218.75/365=$33.48

Total interest  to pay at closing=16days*$33.48

                                                     =$535.62

The number of days was 16 because July has 31days and deal was closed on 15th,hence 31 minus 15 gives 16.

4 0
3 years ago
Other questions:
  • Jin opens her meeting presentation by saying, "hello, i'm jin, and i will be talking with you about doing business in the countr
    10·1 answer
  • The English publisher of a book called Cambridge gave a New York publisher permission to sell that book any place in the world e
    8·1 answer
  • Suppose Rainforest sells 2 comma 000 books on account for $ 19 each​ (cost of these books is $ 22 comma 800​) on October ​10, 20
    10·1 answer
  • A company is benchmarking against a competitor. The company currently has an average PIIS of 87% on 531 SKUs. The competitor man
    6·1 answer
  • An actor is hired to appear in a series of commercials promoting a new laptop computer. The actor's last two movies, though, hav
    12·1 answer
  • Taylor devotes a lot of time to his fam and his friends. It is obvious he values ______.​
    13·1 answer
  • Marietta is the product manager at Fireflies Ltd., a company that designs and manufactures clothes and fashion accessories. Noti
    13·2 answers
  • A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of
    14·1 answer
  • Left ventricular mass (LVM), determined from echocardiograms, is an important risk factor for subsequent cardiovascular disease.
    15·1 answer
  • Jenna has been working at Firenzi Entertainment Group for the past 3 years as a location scout. One of Jenna's chief responsibil
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!