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The demand for 1,000 units of a part to be used at a uniform rate throughout the year may be met by manufacturing. The part can be produced at the rate of 3 per hour in a department that works 1,880 hours per year. The set-up cost per lot is estimated to be $40, and the manufacturing cost has been established at $5.20 per unit. Interest, insurance, taxes, space, and other holding costs are $3.10 per unit per year. Calculate the economic manufacturing quantity
What does an increase in fixed costs due to the average cost curve of small firms.
Illustrate what do economists mean when they say that private goods tend to be produced in the right amounts.
If you each charge a high price, you each earn profits of $200. If you charge different prices, the one charging the higher price loses $50 and the one charging the lower price earns $300.
Illustrate what is the equilibrium price of tickets to the event. Calculate the price elasticity of demand at the equilibrium price.
A study noted that they charged a price for local telephone services that was roughly one-half of its cost of providing the services.
If you were to emmigrate from earth, would you rather land and work in Thisuni or Nisuthi. Elucidate your reason based on the burden of tax paid by workers and firms.
Illustrate what would happen to the profits CPI makes via their toothpaste division.
Determine the income elasticity of demand, and state whether good X is a normal or inferior good. d. Determine the own advertising elasticity of demand.
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Michelle spends all her money on food and clothing. When the price of clothing decreases, she buys more clothing. Does the substitution effect cause her to buy more or less clothing.
Suppose that after five years consumer spending doubles to 400. Explain how much do you believe will be the budget share of leisure.
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