ECO 106 Pace University New York Accounting Questionnaire

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Eco 106Final Exam 10 short answer questionsHigh accuracy need???Due 24 hrs ….

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1:33 9
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X
Final Exam Due by 11:59 pm Mond…
Please Read: Each short answer question is worth 10
points. The exam is due by the last day of class Monday
5/11 11:59 pm. Post your answers in this forum only by
submitting a response to the assignment. Click on the
assignment title above to access the submission button,
titled “Assignment Submission” located at the bottom of the
forum page. Simply click on the submission button, write
your answers in the text box provided and then submit. Do
not send in an email or post a word attachment.
1) Golda Rush quit her job as a manager for Home Depot to
start her own hair dressing salon, Goldilocks. She gave up a
salary of $40,000 per year, invested her savings of $30,000
(which was earning 5 percent interest) and borrowed
$10,000 from a close friend, agreeing to pay 5 percent
interest per year. In her first year, Golda spent $18,000 to
rent a salon, hired a part-time assistant for $12,000 and
incurred another $15,000 on equipment and hairdressing
material. Based on this information, what is the amount of
her explicit costs?
2) Vipsana’s Gyros House sells gyros. The cost of ingredients
(pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana
pays her employees $60 per day. She also incurs a fixed
cost of $120 per day. Calculate Vipsana’s variable cost per
day when she produces 50 gyros using two workers?
3) Damian owns a tattoo parlor and has hired three tattoo
artists to work for him. The marginal product of labor is 8
for the first artist, 12 for the second artist, and 7 for the
third artist. What is Damian’s average product of labor for
these three tattoo artists?
Article Summary
According to the Department of Agriculture, net farm
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1:33 9
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Final Exam Due by 11:59 pm Mond…
Article Summary
According to the Department of Agriculture, net farm
income will grow to a record high of $120.6 billion in 2013,
up from the previous high mark in 2011 and after adjusting
for inflation, its second highest level since 1973. Net cash
income, however, is expected to fall by 10 percent due to
unsold inventories. Exports of chickens and milk are
expected to rise by 3 percent and 17 percent, respectively.
Source: Ros Krasny, “Farm income poised for record 2013:
USDA,” Reuters, August 27, 2013.
4) Refer to the Article Summary. All else equal, the increase
in demand for chicken and milk exports will
the
market prices for these exports and
economic
profit in these markets.
5) The Jeans Store sells 7 pairs of jeans per day when it
charges $100 per pair. It sells 8 pairs of jeans per day at a
price of $90 per pair. The marginal revenue of the eighth
pair of jeans is
6) Suppose that if a local McDonald’s restaurant reduces
the price of a Big Mac from $4.00 to $3.25, the number of
Big Macs it sells per day will increase from 4 to 5. Explain
the output effect and the price effect resulting from this
change. What is the total change in revenue received which
results from this price decrease?
Hint: Use a graph to illustrate both the loss in revenue from
selling each of the first 4 Big Macs for $0.75 less and the
additional revenue from selling 1 more Big Mac. (You do not
need to include the graph).
7) How does the demand curve for an oligopoly firm differ
from the demand curves for firms in competitive market
structuraci
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Final Exam Due by 11:59 pm Mond…
7) How does the demand curve for an oligopoly firm differ
from the demand curves for firms in competitive market
structures?
8) Consider an industry that is made up of nine firms each
with a market share (percent of sales) as follows:
a.
Firm A: 30%
b. Firm B: 20%
C.
Firms C, D and E: 10% each
d. Firms F, G, H and J: 5% each
What is the value of the four-firm concentration ratio and
how is the industry categorized?
9) Consider two industries, industry W and industry X. In
industry W there are five companies, each with a market
share of 20% of total sales. In industry X, there are six
companies. One company has a 50% market share and
each of the other five firms has a market share of 10%.
a. Calculate the four-firm concentration ratio for
each industry.
b. Calculate the Herfindahl-Hirschman Index (HHI) for
each industry.
C. What do the values of the two concentration measures
imply about the degree of market power in the two
industries?
10) Serafina was earning $75 per hour and working 50
hours per week. Serafina’s wage rose to $90 per hour, and
as a result, she now works 60 hours per week. What can
Vou conclude from this information about the income effect
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1:33 9
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Final Exam Due by 11:59 pm Mond…
how is the industry categorized?
9) Consider two industries, industry W and industry X. In
industry W there are five companies, each with a market
share of 20% of total sales. In industry X, there are six
companies. One company has a 50% market share and
each of the other five firms has a market share of 10%.
a. Calculate the four-firm concentration ratio for
each industry.
b. Calculate the Herfindahl-Hirschman Index (HHI) for
each industry.
C. What do the values of the two concentration measures
imply about the degree of market power in the two
industries?
10) Serafina was earning $75 per hour and working 50
hours per week. Serafina’s wage rose to $90 per hour, and
as a result, she now works 60 hours per week. What can
you conclude from this information about the income effect
and the substitution effect of a wage change for Serafina?
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Explanation & Answer:
10 questions

Tags:
variable cost

Average Product of labor

accounting costs

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