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BK books is an online retailer that also has 10,000 bricks and mortar outlets worldwide. You are a risk neutral manager within Corporate Finance Division and are in dire need of a new financial analyst. You only interview students from the top MBA programs in your area. Thanks to your screening mechanisms and contacts, the student you interview ultimately differ only with respect to the wage that there are willing to accept. About 5 percent of acceptable candidates are willing to accept a salary of $60,000, while 95 percent demand a salary of 110,000. There are two phases to the interview process that every interviewee must go through. Phase 1 is the initial one-hour on-campus interview. All candidates interviewed in Phase 1are also invited to Phase 2 of the interview, which consists of a five-hour office visit. In all, you spend six hours interviewing each candidate and value this time at $750. In addition, it costs a total of 4,250 in travel expenses to interview each candidate. You are very impressed by the first interviewee completing both phases of BK books interviewing process, and she has indicated that her reservation salary is 110,000. Should you make her an offer at that salary or continue the interviewing process? Explain.
The hourly wage rate is $6, hourly rentail rate for capital is $8. The production function I found to be q=10K^.5L^.5 The captital if fixed at 225 hours in the short-run.
The peace barber shop employs 4-barbers. One barber, who also serves as the manager, is paid a salary of $1,800 every month. The other barbers are paid 1,300 every month.
Consider a manufacturer with 2-factories. They can make at either factory or both. However, we need to consider the quantities that will be produced at every factory.
Market demand and marginal revenue relations for Glove Box units are: P=$500,000-$250Q;MR=$500,000-$500Q;
Assume capital is fixed at 16 units. If the company can sell its output at a price of $100 per unit and can hire labor at $25 per unit,
Estimate the coefficients of the demand model for the data given above. Provide an economic interpretation for each of the coefficients in the estimated demand equation you have compuated.
For each policy or event given below, please indicate if it will increase (+), decrease (-), or it is uncertain (+/-) how it will affect the economic variable on right-hand side.
How does capital investment affect the marginal physical product of labor and does more college education have the same kind of effect also which is a better investment
During the last ten-years, sales revenue has increased from 25 million to 65 million. Estimate the company's growth rate in sales using the constant growth model with annual compounding.
Suppose Amanda Herman finds that her total spending on compact dics remaing same after price of compact fall, other things equal.
Mr. Smith, has fallen behind on his work, he has asked you to help to make a letter for a local business or economic project.
Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.
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