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A large wood products company is negotiating a contact to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $800,000 per month. The variable cost per thousand board feet is $155.50. The price charged will be determined by p=$600 - (.05)D per 1,000 board feet.
A) For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at that optimal volume.
B) What is the domain of profitable demand during a month?
Assume that the senior managers of FedEx Express and FedEx Ground each have an investment opportunity that would require $20 million of additional operating assets and that would increase operating income by $4 million. If FedEx evaluates all of i..
The price level in the economy in 2007 and 2008 rose from 100 to 105. In 2008 and 2009, the price level increase from 105 to 110.25. How does the short-run Phillips curve forecast the unemployment rate will change as a result?
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loan able..
Pope Urban II's Speech at Clermont (1095) in Lualdi, How did urban ii appeal to his audience? Why do you think this language motivated people in the audience to join the Crusade? What did the Crusade offer them?
Describe political and social impacts of this association. Are regional trade associations beneficial for global economy. For members of association.
Find an example of an organization that is incorporating corporate social responsibility (CSR) into its operations and overall management. Provide a brief summary regarding what the organization is currently doing. In your opinion, do sport managers,..
Two firms compete in quantities, selling identical goods, facing the demand function P(Q) = 130−q1− q2 where qi is the output level of firm i. Assume that firm 1 is more efficient than firm 2, MC1(q) = 10 and MC2(q) = 20. Find the NE quantities of th..
The payroll tax is levied at a rate of 15.3% of a worker’s earnings, up to a ceiling. For workers with earnings greater than the ceiling, the tax rate is only 2.9%. Also, the payroll tax does not apply to capital income, which is a larger share of in..
Does the existence of “efficiency loss” associated with health care over-consumption mean that citizens are worse off with the government’s provision of this insurance?
A local sports bar routinely promotes sporting events, such as the Super Bowl, the NCAA Sweet Sixteen tournament, the BCS games, the Masters, NBA and NFL playoffs, NHL, baseball, NASCAR, and key curling bonspiels.
Explain what the GDP cost index is and what is its role in differentiating nominal GDP and real GDP.
Explain, in your own words, what a "store within a store" is. Provide 3 situations where this could work. Explain the logic behind your decisions.
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