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A major car company (from Japan), announced a major restructuring plan. to attempt to reverse its 6 percent decline in sales. the company's North American sales were hard hit, where a 29 percent drop in sales. This because of bad loans and financing with banks. In Japan, sales dropped a 56 percent, due to recalls and attempts to cover up faulty products.
Prior to restructuring plans, marginal rate of technical substitution is 0.15 (abolute value). To hire workers, suppose must pay the rate of Y1,330 and determines that the marginal productivity of capital is 0.5 small cars per hour at his targeted level of outpuet and the capital is procured in a highly competitive market. A study done also shows the smallest car and the aveage of selling it is Y950,000.
Determine the rate of can rent capital and marginal productivity of labor at its new targeed level of output. To minimize the cost, the car company should hire capital and labor until the marginal rate of subsitution reaches what portion?
Can you show any type of formula's to show the outcome of this?
In the competitive market, the market demand is Qd=48 - 5p and the market supply is Qs = 7P. The equilibrium price is4
A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%.
The general demand function for a good, Good A, is: Is Good A a normal good or an inferior good? How do we know exactly?
Shoes For Less (SFL) hires you to estimate the demand for their shoes, and you estimate this to be: Describe the difference in the results between your results and those of original consultant.
Crew Brew produces a popular brand of beer in its mini-brewery located on a small river in Kentucky. Assume that capital can be purchased for $8 per unit, and labor costs $6 per unit. What is the optimal combination of inputs for the firm to employ..
Gentleman Gym just paid its annual dividend of $3 per share, and it is hugely expected that the dividend will raise by five percent per year indefinitely.
Generally, which of the following is true? (where rE is the cost of equity, rD is the cost of debt and rA s the cost of capital for the firm.
A hypothetical study examines the operations of a couple of hundreds medical clinics, with the data for amount of expenses for new medical equipment relative to total expenses in particular year(s), and the amount of revenue per physician in subse..
What happens to the student's budget line? Illustrate the change with new books on the vertical axis. Is the student worse off or better off after the price change. Explain.
What impact would this have on the Kitty Litter market and the individual Kitty Litter producer in the SR? In the LR? Carefully Explain.
What are the marginal costs and benefits of pursuing additional education and inherent risks associated with this decision?
What will the economic impacts of maintaining lower CO 2 emissions in the aggregate for the Turkish economy?
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