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1. Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. Its estimates that the marginal cost function for reducing pollution by installing additional capital equipment is: MC = 40P where P represent a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR = 1,000 - 10P. How much pollution reduction should Appalachian Coal Mining undertake?
2. Twenty first Century Electronics has discovered a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards. The following table shows how the number of security guards affects the number of radios stolen per week. If:
Number of Number ofsecurity guards stolen radios per week0 501 302 203 144 85 6
a. If each security guard is paid $200 a week and the cost of a stolen radio is $25, how many security guards should the firm hire?b. If the cost of the stolen radio is $25, what is the most the firm would be willing to pay to hire the first security guard?c. If each security guard is paid $200 a week and the cost of a stolen radio is $50, how many security guards should the firm hire?
Prior to opening his hardware shop Bob worked as an investment banker earning $175,000 each year. He pays his employees $150,000 per year.
Elucidate the relationship among budgeting and financial reporting in government.
Do you think we, as customers will be more price sensitive also price conscious. What do you think this means for luxury goods.
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
The Alpha Corporation is a member of the lamp industry, which is perfectly competitive. The value of a lamp is $50. The company's total cost function is:
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Illustrate what is the price elasticity of supply for your chosen industry.
A change in the money supply has no effect on the long run values of the interest rate or real output.
Describe the output level of the firm, the number of workers it employs and the profit of the firm.
Describe the uncontroversial final effect of a contractionary monetary policy and an expansionary fiscal policy.
Efficiency and sustainability are management goals with respect to renewable resources. As Field explains, biological and economic considerations are typically blended in determining the efficient allocation of these resources.
The manager of a corporate division faces possibility of an audit each year. She prefers to spend time preparing if she will be audited;
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