StudentShare solutions

# Microeconomics - Math Problem Example

## Extract of sample Microeconomics

For example, if the company decides not to fly, it will still incur the fixed costs as they are not related to the output. It will only save the variable costs. In this situation there's no revenue as firm's planes are lying idle. In this situation the firm will still have to pay its insurance and incur depreciation incurring a loss of \$4000. However, if it flies between the two cities it makes a loss of only \$2000. Hence, it is better for the company to fly between the two cities. However, if it keeps on making losses and they extend to the long-run, then it is better for the firm to shut-off its operations and invest its capital in an industry, where it could make a normal profit.
b) At the product price of \$28, the production will fall to 5 units. At his point the firm will be making a loss of = 140 - 175 = (\$35). Despite the loss, the firm will continue to produce as it covering its variable costs.
c) At the product price of \$22, there will be no production at all. Looking at the data, the firm will try to equate its price with MR and the resulting output according to this should be 2 units. However, the revenue gained from this will be only \$44, whereas the average costs will be \$75, as a result the firm will not produce at all as its revenue is less than average costs and it will only increase the loss if the firm decides to go with the production.

## Summary

Looking at the data, one might say that it is not feasible for the company to be flying between the two cities as it implies a loss of \$2000 (Total Revenue - Total Cost). However, rationality of the situation according to the economic analysis is that the firm should continue to operate and should fly between the two cities in the short-run…
Author : remingtonondric
Save Your Time for More Important Things
Let us write or edit the math problem on your topic
"Microeconomics Math Problem"
with a personal 20% discount.
Grab the best paper

### Check these samples - they also fit your topic

Revenue Math Problem
The property information indicates that this hotel is very distinct from its competitors. It has a superb architecture that if properly highlighted will not only woe customers but provide a opportunity for a higher average daily rate (ADR) than its competitors.
3 pages (750 words) Math Problem
Algebra Math Problem
Application: Matthew would like to put up a small coffee-bean store selling two special varieties of coffee – Arabica(M) and Robusta(H). He estimates obtaining profit from each kg of Arabica(M) worth \$10.50 and from each kg of Robusta(H) costing \$9.25. If he desires to have 2500 kgs of bean-mixture sold for \$9.74 per kg, how much of each kind must be present in the mixture?
6 pages (1500 words) Math Problem
College Math Math Problem
An independent variable is the number of years after 1960. c) Both models have rather close predictions. In order to validate their predictive power it is necessary to check the predicted values vs. the actual values. For this purpose I used the actual MSW data for 2003 provided by the United States Environmental Protection Agency (EPA)1.
2 pages (500 words) Math Problem
MATH Math Problem
(a) Prepare an income statement and an owner's equity statement for the year. The owner did not make any new investments during the year. (If there is a loss, put amount in parenthesis in the income statement. If there is a loss, enter the amount as a positive number on the owner's equity statement.
1 pages (250 words) Math Problem
Managing Finance Math Problem
4 pages (1000 words) Math Problem
Math Problem
3 pages (750 words) Math Problem
Assignment 3 High School Math Problem
Even from the start t = 0, the theoretical MW is already 50,000 telling us that the model is inaccurate in modelling less values below 50,000. From the graphs, it can be seen that the profit graph is entirely the result of subtracting the cost values with the revenue values.
6 pages (1500 words) Math Problem
College Math Master Math Problem
Here it is given that the tires are equally durable(i.e. identical in terms of quality and thickness). Also we assume here that the roads on which the two cars travel and other conditions are identical so that the friction offered is practically the same and that the cars have more or less the same weight(generally the cars with the larger wheels have more weight and hence offer more burden on their wheels).
2 pages (500 words) Math Problem
Corporate Finance Math Problem
The balance sheet showed that the assets of the company increased with the despite of increasing sales. Cash decreased because the company sold more of their products on credit rather than on cash, which can be observed by the growing number of Account receivables which manifested a figure of \$0.632 million FY 2007, which were \$0.35 million a year before.
8 pages (2000 words) Math Problem
Economic Math Problem
The ultimate result may be as follows: If the change caused by the income effect is greater than by the substitution effect, more of X would be consumed; otherwise - consumption of X would decrease or stay at the same level. Risk averse individuals are better off with purchase of insurance because they prefer certain losses to uncertain ones of the same scale.
2 pages (500 words) Math Problem
Hire a pro to write