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You work for a manufacturer that in the past year has grown from a firm that operates a single factory to two factories. The chief operating officer of the company collects data on production and costs, and the numbers say that as long as the firm produces at least 1,000 units per month, the average cost of production is always lower when both factories are in operation than when the firm only uses one factory. Based on this information, some members of your company's management team want to take out a loan to build three more factories. The thinking is that the firm can continue to drive down average cost as it expands the number of factories it operates, driving up profits. What might be problematic about this plan?
Compute the price elasticity of demand between two points. Total revenue to rise or fall?
Would need a 2 to 3 page essay on recommendations for present scenario for United states with 4.9 percent unemployment rate and 1.2 inflation rate.
Describe an episode in which what appeared to be the presence of positive economic profits attracted entry to a market. It should describe the nature of the market and the circumstances surrounding the entry of new firm(s).
Illustrate what do economist mean by this. How do they determine what the right amount of the good is.
Select an organization that has both U.S. and international presences. Write a 750- to 1,000-word paper in which you answer address the following:
Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences mana..
Discuss market trends that the organization will face. Explain your conclusions. Address how each of the following will change or will not change.
Marginal Revenue (MR) = $130 Total Cost (TC) = $1,100 + 135Q + 0.6Q2 Marginal Cost (MC) = 135 + 1.2Q As the plant manager, should you recommend to the owners that the plant be shut down for a while? Justify your answer using at leas..
Assume that a profit-maximizing firm is perfectly competitive in both the output and the factor markets and is at its long-run equilibrium. The firm's output is 100 units, its total revenue is $600.00, and the fixed cost of production is $50.00. B..
A "scarce" good is a good: Answer for which it is impossible to increase production any further given the available resources and technology. for which there is a shortage at the current market price.
Economist Milton believes that expectations of inflation change quickly in response to new policies, whereas economist James believes that expectations are very sluggish. Which economist is more likely to favor the proposed change in monetary polic..
An upscale bistro in a small town charges higher prices for the same menu items at dinner time than at lunch time. Does the bistro necessarily practice price discrimination? Explain your answer. What is the social cost of a monopoly? Explain.
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