# Economics chapter 9&10 | Economics homework help

Chapter 9

3. A study of the costs of electricity generation for a sample of 56 British firms in 1946-1947 yielded the following long-run cost function

AVC=1.24+.0033Q + .0000029Q² – .000046QZ – .026Z +.00018Z²

Where ACV= average variable cost (i.e. working costs of generation) measured in pence per kilowatt-hour (kWh). (A pence was British monetary unit equal, at that time to 2 cent U.S)

Q= output, measured in millions of kWh per year

Z= plant size, measured in thousands of kilowatts

1. Determine the long- run variable cost function for electricity generation
2. Determine the long-run marginal cost function for electricity generation
3. Holding plant size constant at 150,000 kilowatts, determine the short-run average variable cost and marginal cost function for electricity generation
4. For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs
5. Determine the short-run average variable  cost and marginal cost at the output level obtained in part (d)

4. Assuming that all other factors remain unchanged, determine how a firm’s break-even point is affected by each of the following.

a. The firm finds it necessary to reduce   the price per unit because of increased foreign completion

b. The firms direct labor costs are increased as the result of a new labor contract

c. The Occupational Safety and Health Administration ( OSHA) requires the firm to install new venting equipment in its plant. (Assume that this action has no effect on worker productivity)

5. Cool-Aire Corporation manufactures a line of room air conditioners. Its break-eve sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 40,000 units

a. Determine the probability that Cool-Aire will incur an operating loss

b. Determine the probability that Cool-Aire will operate above it break-even point.

Chapter 10

2. Television channel operating profits very from as high as 45 to 55 percent at MTV and Nickelodeon down to 12 to 18 percent at NBC and ABC. Provide a Porter Fuve Force analysis of each type of network. Why is MTV so profitable relative to the major networks?

6. Assume that a firm in a perfectly competitive industry has the following total cost schedule

OUTPUT (UNITS)                                           TOTAL COST (\$)

10                                                                         \$110

15                                                                          150

20                                                                         180

25                                                                          225

30                                                                            300

35                                                                         385

40                                                                           480

1. Calculate a marginal cost and an average cost schedule for the firm
2. If the prevailing market price is \$17 per unit, how many times will be produced and sold? What are profits per unit? What are total profits?
3. Is the industry in long-run equilibrium at this price?

10. Which of the following products and services are likely to encounter adverse selection problems: golf shirts at travelling pro tournaments, certified gemstones from Tiffany’s graduation, gift travel package or mail-order auto parts? Why or why not?

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

### Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

### Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: