You are given the following information for a T-shirt manufacturing firm:

(10 pts) Suppose this firm sells widgets in a perfectly competitive output market and the current...

(10 pts) Suppose this firm sells widgets in a perfectly competitive output market and the current price of widgets is, P=$1.50. Determine the firm’s VMPL and fill out the column. Hint: Just a reminder that VMPL is the value of the marginal product of labor. The VMPL is just a variation of MRPL, in the specific case of perfect competition in the product market. We know that MRPL= (MR x MPPL), but if the firm is a perfect competitor in...

You are an entrepreneur who will be starting a t-shirt business. Your company will rent space...

You are an entrepreneur who will be starting a t-shirt business. Your company will rent space inside the mall. You will buy plain t-shirts and imprint them with one of twelve pictures exclusively designed for your company by a famous artist who is a friend of yours. Your target customers are teenagers and young adults and you plan on selling your t-shirts for $15 each. Your business is scheduled to open on January 1, 2020. Below is the cost information...

Consider a manufacturing firm that occupies 5 acres of land. The firm produces 20 tons of...

Consider a manufacturing firm that occupies 5 acres of land. The firm produces 20 tons of sugar per day and sells its product at a price of $80 per ton. The firm does not engage in factor (capital and land) substitution as the price of land changes. Intraurban transportation is on trucks, with a unit cost of $10 per ton per mile. The firm’s nonland cost is $300 per day. The firm exports its output via beltway. a. Draw the...

1. The Academic T-Shirt Company did a cost study and found that it costs $1400 to...

1. The Academic T-Shirt Company did a cost study and found that it costs $1400 to produce 600 “I Love Math” T-shirts. The total cost is $1600 for a volume of 700 T-shirts. Determine the linear cost-volume function. What is the fixed cost? What is the unit cost? 2. The Computer Shop sells computers. The shop has a fixed cost of $1500 per week. Its average cost per computer is $649, and the average selling price is $899 each. Write...

Suppose Cool T-Shirts Co produces T-shirts and employs labor (L) and capital (K) in production. Suppose...

Suppose Cool T-Shirts Co produces T-shirts and employs labor (L) and capital (K) in production. Suppose production function for Cool T-Shirts Co is Q=K*L, and Cool T-Shirts Co wants to produce Q=625. Suppose marginal product of labor (MPL) and marginal product of capital (MPK) are as follows: MPL=K and MPK=L. Suppose Cool T-Shirts Co pays workers $10 per hour (w=$10) and interest rate on capital is $250 (r=250). What is the cost-minimizing input combination if Cool T-Shirts Co wants to...

1. The daily production data of a firm are given below. The wage rate is MYR...

1. The daily production data of a firm are given below. The wage rate is MYR 20 per day for each labor (variable input) and it is the only variable cost incurred. Additionally, output refers to the total products and it is in hundreds of units. Labor Output AP MP TVC TC MC AFC AVC ATC 0 0 - - 40 - - - - 1 18 2 37 3 57 4 76 5 94 6 111 7 127 a....

Required information [The following information applies to the questions displayed below.] Inner Secret T Shirt Company...

Required information [The following information applies to the questions displayed below.] Inner Secret T Shirt Company produces and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 17 Variable manufacturing overhead $ 3 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 500,000 Fixed selling and administrative expenses $ 130,000 During its first year of...

Required information [The following information applies to the questions displayed below.] Inner Secret T Shirt Company...

Required information [The following information applies to the questions displayed below.] Inner Secret T Shirt Company produces and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 30 Direct labor $ 14 Variable manufacturing overhead $ 6 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 550,000 Fixed selling and administrative expenses $ 160,000 During its first year of...

Inner Secret T Shirt Company produces and sells one product. The following information pertains to each...

Inner Secret T Shirt Company produces and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 17 Variable manufacturing overhead $ 3 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 500,000 Fixed selling and administrative expenses $ 130,000 During its first year of operations, O’Brien produced 93,000 units and sold 73,000 units. During its...

A local manufacturing block factory in Winneba (ABIJACK construction Ltd) can produce the following output per...

A local manufacturing block factory in Winneba (ABIJACK construction Ltd) can produce the following output per day at the various employment levels: Workers Output MPL 0 0 - 1 100 a 2 150 b 3 190 c 4 225 d 5 250 e a. Fill in the values a-e [8 marks] b. If the price per block is GHC2, plot the marginal revenue product of labour against the number of workers. [8 marks] c. If ABIJACK construction must pay GHC...