Trois elles corporation recently prepared a manufacturing cost budget for an output of 58,000 units, as follows:

direct materials $116,000
direct labor 58,000
variable overhead 87,000
fixed overhead 116,000

actual units produced amounted to 68,000. actual costs incurred were: direct materials, $117,000; direct labor, $68,000; variable overhead, $116,000; and fixed overhead, $113,000. if trois elles evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of (round intermediate calculations to 2 decimals and the final answer to the nearest dollar amount.):

a. $8,000 favorable.
b. $5,000 favorable.
c. $44,000 unfavorable.
d. $37,000 unfavorable.
e. none of these.

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it.g

When a market is in equilibrium, the buyers are those with the willingness to pay and the sellers are those with the costs.

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?