Explain how the following events may affect the profit rate for a U.S. firm and industry (be sure to define your measure(s) of the profit rate) :Consider both the immediate impact and the possible long run implications: (1) across firms within an industry; (2) across industries and (3) across nations please long and mindful answers that covers all three categories. a) Oil price increases b) Election of a union-backed government c) Outsourcing of clerical work to India d) Introducing a better assembly line

Q: e) The short-run cost function of a company is given by the equation TC = 200 + 55q, where TC is the…

A: The short-run cost function of a company is given as: Total Cost: TC = 200 + 55q where; TC = total…

Q: 3. Consider a producer with the production function y = J(L + K). The price of L is 2 and the price…

A: Given, Production function  y=L+Ky2=L+K Price of L = 2 Price of K = 4 The cost function,  C=PL×L…

Q: Fill in the blanks in the following table and then answer the question that follows. (Note: Round…

A: Marginal Product = Change in Total Product / Change in Input Average Product = Total Product / Units…

Q: efer to the graph. Which one of the following would cause a move from point d to point e along…

A: A cost curve is a graph representing production costs as a function of total amount produced in…

Q: Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for…

A: Explicit costs and revenues are those financial transactions that are directly related to a decision…

Q: 5. Assuming the same wages and technology as before - how much does it cost the firm to produce q =…

A: ISO-Quant: Iso -Quant shows different combination of capital and labour such that each combination…

Q: AP is increasing, is AP above (greater), below (less) or equal to MP? ________ chose one AP is…

A: The marginal product is basically the rate of change of product with respect to the quantity of the…

Q: "I know that it's the thing to do," insisted Pamela Kincaid, vice president of finance for Colgate…

A: Calculate NPV of the project with discount rate of 14% and20%.

Q: Austin owns the Fruit Bowl Inc company. Which of the following would be short run decisions for…

A: There are many types of inputs used in the production of goods and services. Two of them are capital…

Q: 6. Prior to the battle for wages, the ritzy had two machines and four members of staff. Staff were…

A: Total cost is the sum of fixed and variable cost.  Fixed costs are the cost that are fixed and…

Q: Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory…

A: An average fixed cost (AFC) defines how much it expenses to fabricate one unit. It helps measure the…

Q: Problem 3* A competitive firm has the following production function: f(L,K) = min {L, K}. Suppose…

A: The production function is given as w = 2r = 4

Q: 4. A firm has technology such that it can produce... q = L + K a. What name do we give to this…

A: ANS .4 Production function refers to the output produced with the help of the factors of production…

Q: Typed please and asap please provide a quality solution

A: The production function is a fundamental concept in economics that describes the relationship…

Q: Question 5. The Cobb-Douglas production function is widely used in economic and empirical analysis…

A: Part a and c is answered here as they are marked. a.  Let Akα=BMPL=BβLβ-1dMPLdL=Bβ(β-1)Lβ-2<0,…

Q: Let the hourly production function for Fred's Fountains be the following: .251.5 The rental rate of…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: “Cost functions can be very important for determining the structure of a market” Cost functions are…

A: You've done a good job of highlighting how cost functions affect how perfectly competitive markets…

Q: A firm has a production function Q in function of K and L that can be written as follows: Q = 2/K/L…

A: The production function is a model that expressed the relationship between inputs (like labor and…

Q: A profit maximizing firm produces output using capital, K, and labour, L, in the following…

A: Production function, in the study of economics, helps in establishing a relation between maximum…

Q: 3. The wage rate is £10 and the capital rate is £20. If a firm was spending £c, show what…

A: An isocost line is the locus of input combinations for a particular cost outlay of the firm. A firm…

Q: A breeder tells you he has determined for each 1-lb increase in weaning weight profit increases by…

A: GIVEN     A breeder tells you he has determined for each 1-1b increase in weaning weight profit…

Q: You are an economic consultant for Jack, who farms, raw cotton in a perfectly competitive market.…

A: Business economics involves navigating decisions and resource distribution amid challenges,…

Q: otal Revenue Cost of Lemonade Wages

A: Accounting profit is the subtraction between total revenue and explicit cost. A firm's payments to…

Q: Assume that the following marginal costs exist in catfish production:  Quantity produced (units per…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Patrons at the Ritzy cinema can either buy their tickets at the counter (from a person) or enter…

A: Since you have asked us to answer only question 8, we will answer Part C for you since the questions…

Q: Section one-theory A: Key concepts 1. What is the difference between production in the short- and…

A: Production Function: Production function represents a relationship between the input and output. It…

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?