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Recovering the Acquisition Cost. The long-run average cost of production is constant at $6 per unit. Suppose firm X acquires Y at a cost of $24 million and increases the price to $14. At the new price, X sells 1.5 million units per year. (Related to Application 4 on page 611.)
a. How does the acquisition affect X s annual profit?
b. How many years will it take for X to recover the cost of acquiring Y?
America takes 10 hours to make a cup and 5 hours to make a bag. In Britain the two goods cost $24 and 6 hours. America has 40 hours of labor available. Which goods does America export. Which country has the higher wage
Rolled ball screws are suitable for high precision applications such as water jet cutting. Their total manufacturing cost is expected to decrease because of increased productivity, as shown in the table. determine the equivalent annual cost at an ..
The supply and demand equations of a good are given by : Qs=-8+P and Qd= (80/3)-(1/3)P respectively. P is measured in dollars. Suppose the government decides to impose a constant per unit tax of $t on the supplier.
If the CPI was 120 last year and is 144 this year, what is this year's rate of inflation In contrast, suppose that the CPI was 120 last year and is 114 this year. What is this year's rate of inflation What term do economists use to describe this seco..
the new mayor has pledged to reduce air pollution and the only source of air pollution in the city are two
Quagmire Corporation wants to set up a manufacturing plant to last for 20 years. Initial costs at year 0 are $18,000 for the building and $31,000 for the equipment. At year 10 there will be a major machinery overhaul
Suppose a monopolist faces the following demand curve: P = 90 - 2Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. A) What is the monopolist's profit maximizing level of output
Today's mainstream economists speak of "rational economic man" as the fundamental character of people, immutable across time and space, and the foundation of economic activity. Key characteristics of "rational economic man" are atomism, egoism, a..
Write properties and characteristics for monopoly market
find all the partial derivatives e.g. ?u?x and ?u?y of the following functions1. qpi 300 - 3p - 4i2. uxy 10xy3. uxy
Suppose the market demand function for ice cream is and the market supply function for ice cream is , both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream.
Charlie cares only about the amount of chocolate he eats this year (C0) and next year (C1). His preferences correspond to the utility function \(U(C_{0},C_{1})=4(\sqrt{C_{0}}+\sqrt{C_{1}})\) Suppose he earns $1,000 this year and nothing..
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