For further query you can Contact Us :
Login | New Register
Do you think that exculpatory clauses should be routinely enforced regardless of the situation? Why or why not? What limitations should be placed on the enforcement of exculpatory clauses, if any?
Independent Contractor v. Employee
1. Briefly explain whether the demand for each of the following products is likely to be elastic or inelastic:
a. Milk (5 points)
b. Frozen cheese pizza (5 points)
c. Cola (5 points)
Prescription medicine (5 points)
1. [Related to the making the connection on page 354]
For Jill Johnson’s pizza restaurant, explain whether each of the following is a fixed cost or a variable cost:
a. The payment she makes on her fire insurance policy
b. The payment she makes to buy pizza dough
c. The wages she pays her workers
d. The lease payment she makes to the landlord who owns the building where her store is located
e. The $300-per-month payment she makes to her local newspaper for running her weekly advertisements
1. The following table shows the quantity of workers and total output for a local pizza parlor.
Answer the following questions based on the table:
Quantity of Workers Total Output
a. When the owner hires 4 workers, what is the average product of labor?
b. What is marginal product of fifth worker?
c. If the marginal product of second worker is 6, what is the total number of pizzas produced when 2 workers are hired?
Assuming the marginal product of the second worker is 6, with which worker hired does the law of diminishing returns set in?
Delgado owns a copier store. He leases two copy machines for which he pays $20 each per day. He cannot increase the number of machines he leases without giving the office machines company six weeks’ notice. He can hire as many workers as he wants, at a cost of $40 per day per worker. These are the only inputs he uses to produce copies.
a. Fill in the remaining columns in the following table.
b. Draw the average total cost curve and marginal cost curve for Santiago’s store. Dose these curve have the expected shape? Briefly explain.
1. Use the information in the following graph to find the values for the following at an output level of 1,000.
a. Marginal cost
b. Total cost
c. Variable cost
d. Fixed cost
5. [Related to Solved problem 11.6 on page 367]
An article in the Wall Street Journal discussed the purchase of the small Zipcar rental ca firm by the much larger Avis. The article predicted that the purchase would be successful because of the “efficiencies gained by putting the two companies together.” The article also observed: “On its own, Zipcar is too small to achieve economies of scale.”
a. What economies of scale may exist in the rental car industry? Why would a rental firm that is too small to unable to achieve these economies of scale?
b. What does the article mean by “efficiencies” that might be gained by putting the two companies together?
c. If Avis had already achieved minimum efficient scale before buying Zipcar, would the combine companies still be more efficient than if operated separately? Briefly explain.
1. Until recently, you worked for a software development firm at a yearly salary of $35,000. Now, you decided to open your own business. You quit your job, cash in a $10,000 savings account (which pays 5% interest), and use the money to buy computer hardware to use in your business. You also convert a basement apartment in your house, which you have been renting for $250 a month, into a workspace for your new software firm.
You lease some office equipment for $3,600 a year and hire two part-time programmers, whose combined salary is $25,000 a year. You also figure it costs around $50 a month to provide heat and light for your new office.
a. What are the total annual explicit costs? (10 points)
b. What are the total annual implicit costs? (10 points)
c. At the end of your first year, your accountant cheerily informs you that your total sales for the year amounted to $55,000. She congratulates you on a profitable year. Are her congratulations warranted? Why or why not? (10 points)
1. Suppose that a perfectly competitive firm has the following total variable costs (TVC):
Quantity (Q) 0 1 2 3 4 5 6
$0 $6 $11 $15 $18 $22 $28
It also has total fixed costs (TFC) of $6. If the market price is $5 per unit:
a. Find the firm’s profit-maximizing quantity using the marginal revenue and marginal cost approach. (10 points)
b. Check your results by re-solving the problem using the total revenue and total cost approach. If the firm earning a positive or negative profit? (10 points)
Our Assignment Experts are extremely Professional in providing Assignment Help upto PhD level
Sign up to our newsletter and get exclusive deals you wont find anywhere else straight to your inbox!
© 2015 MSA Homework Help All Rights Reserved
Disclaimer: MSA Homework Help provides reference papers to the student and we strongly recommend you not to submit the papers as it is. Please use our solutions as model answer to improve your skills.