Question: Cost. Both technologies have zero variable cost and a fixed cost per period equal to F. The inflexible technology has a fixed cost Finflex =

Cost. Both technologies have zero variable cost and a fixed cost per period equal to F. The inflexible technology has a fixed cost Finflex = 7, while the flexible technology has a higher fixed cost Fflex = 8. Since consumers demand 1 unit of output, If a firm produces in a period, it produces one unit of steel Q = 1. Therefore if a firm produces, the profit in that period is = P F.

Question 2: If the firm produces at period 1 calculate the following quantities: (1) What is the profit at period 1 if P = Ph for the flexible technology? (2) What is the profit at period 1 if P = Pl for the flexible technology? (3) What is the profit at period 1 if P = Ph for the inflexible technology? (4) What is the profit at period 1 if P = Pl for the inflexible technology?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the...

Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report. Open the Guidance Report and rework the...

Two Discussion Questions. A minimum of 200 words per question. Both questions are attached to the word document and each chapter to both questions are attached to the PDF. Any references/citations...

Deliverable #1 The Operating Budget (Week 3) Input the sales volume, as projected by your Field Sales managers. Input your forecast product mix, as provided by the Marketing department. Input the...

Thank you for assisting me throughout this course. please contact with any questionsagain thank you Mid-term (Chapters 3-4) 1. During the month of April, direct labor cost totaled $15,000 and direct...

I just need (a) theoretical capacity, (b) practicalcapacity, and (c) normal capacity utilization. Honeygold Lager has just purchased the Denver Brewery. The brewery is two years old and uses...

Please help with The Theoretical Capacity for Requirement 2 and labeling variances as (F) or (U) Zing Lager has just purchased the Buffalo Brewery. The brewery is two years old and uses absorption...

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop...

3. Tolman Lager has just purchased the Cleveland Brewery. The brewery is two years old and uses absorption costing. It will "sell its product to Tolman Lager at $44 per barrel. Peter Bryant, Tolman...

Special Order Total cost data folow for Gented Manufacturing Company with a normal cancy per period of 20,000 units of product that sell for 554 ach for the formale future reguar sales volume should...

The human eye can respond to as little as 1018 J of light energy. For a wavelength at the peak of visual sensitivity, 550nm, how many photons lead to an observable flash?

An ideal gas with a macular mass of 45 is heated at constant pressure from 135C to 420'C. If the enthalpy change is 320k/kg, Determine, a) the change in internal energy b) the change in entropy.

Explain the economic consequences that would unfold if one of the major four sports leagues reorganized into a single-entity league. Discuss the consequences for players and fans.

please help me with all of these questions thank you in advance 5) Company C has three office employees who earn $100 a day each and are paid on Friday for a five-day workweek that begins on Monday....

=+ e. Using your graph, show the impact of an increase in u. (Hint: This change affects both curves.) Describe both the immediate and the steady-state effects.

=+ 7. Choose two countries that interest youone rich and one poor. What is the income per person in each country? Find some data on country characteristics that might help explain the difference in...

=+difference? In your judgment, how useful is the Solow model as an analytic tool for understanding the difference between the two countries you chose?