Assignment 1

e) Some people advocate government funding of college scholarships as a way of creating a more egalitarian (equal rights and opportunities) society. Others argue that scholarships help only those who are able to go to college. Do your answers to the preceding questions shed light on this debate? There is no need to use any calculations here, just use your common sense, economic logic, and the answers from previous questions in this problem to guide you in your answer. Please limit your answer to no less than 3 and more than 5 sentences. I will deduct points for going over the limit.

11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is the total amount expressed on a per unit basis?

Looking back from when I began my career, I can say I came a long way learning the concepts of understanding the expectations that arose from all my positions. In my first job just after graduating, I was appointed as a Business Accountant of a multinational company. Since then, I was caught in the myth that people who were in leadership positions or high ranking were leaders. Being in a junior position, I could have the least effect on any new ideas as my voice seems to have landed in deaf ears. I have seen how those businesses were not in line with their Missions and Values only to find later that many of the staff had left the company.

Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

1) If a monopolist's price is $65 a unit and its marginal cost is $25 for the last unit produced,

Consider the production schedules for two fictional countries, Ying and Tai. Both countries can only produce two types of goods, Lychees and Teacups. The rows a to e depict the possible combinations of these two goods that each country can produce. Ying Number of Number of Lychees Teacups 0 12 2 Tai Number Lychees 4

2) The company’s shipment of digital cameras to retailers in various foreign countries are subject to

The cost to Swank Company of manufacturing 15,000 units of a particular part is $135,000, of which $60,000 is fixed and $75,000 is variable. The company can buy the part from an outside supplier for $6 per unit. Fixed costs will remain the same regardless of Swank’s decision. Should the company buy the part or continue to manufacture it? Prepare a comparative schedule in the format illustrated in Exhibit 21-6.

2. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of adding one additional unit of food instead of textiles.

Based on the table above, for country B, the opportunity cost of producing an additional unit of X is

TFU2.
If
the
supply
curve
of
a
good
is
perfectly
elastic
and
its
demand
curve
is

  A) reduced competition in most industries.   B) eliminated competition in many industries.   C) reduced efficiency in most industries.   D) increased competition in most industries. ANSWER: D 21.

b. a nation’s competitiveness in an industry depends on the capacity of the industry to innovate and upgrade.

Suppose Frieda is offered a free voucher that entitles her to one of the following: a movie, dinner at a restaurant, or a concert. Frieda values the movie at $15, dinner at $20 and the concert at $40. Frieda’s opportunity cost of going to dinner is: