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Your firm has a plant that can produce a maximum of 12,000 units of a product each month when operating at full fixed capacity. To meet demand for the next six months, the leadership team decided to schedule only one working shift producing a total of 7,500 units each month. What does this imply about operating capacity for the next six months?
a. Operating capacity will be 62.5%.
b. Operating capacity will be affected by stock outs.
c. Operating capacity will be 4,500 units.
Private insurance raises issues of adverse selection and moral hazard. Consider insurance that compensates professional athletes for injuries that result in lost income. Illustrate how adverse selection could be a problem for this type of insurance. ..
Complete the following table which summarizes the weekly sales and cost situation confronting a monopolist: Instructions: Enter your responses for total revenue, marginal revenue, and marginal cost as whole numbers. Enter your responses for average t..
Which of the following economic changes are consistent with cost-push inflation? Check all that apply. Which of the following are consequences of hyperinflation? Check all that apply.
q1. susie purchased a non-refundable ticket to a soccer match for 20. it will cost her 10 worth of gas and wear and
For each of the following goods, give your best estimate of its most likely degree of rivalness and (relative) exclusion cost, using the definitions of these variables and the information in the course notes on externalities and public goods. Explain..
Aggregate demand management refers to the changing of policy variables like government expenditures, taxation (fiscal policy tools) or money supply and interest rates (monetary policy tools) to attain a target level of GDP. Why is there an inverse re..
Use the following FOC for schooling in the simplified model: f'(s) = r(f(s)+c(s)), in which s is total time in school (e.g., years of school attained), f(s) is the adult wage while working, and c(s) is the direct cost of school (tuition, transportati..
Suppose the quantity of gadgets demanded is reported to have fallen by 20 units—from 50 to 30 units—as a result of a per-unit-price increase in widgets from $10 to $14, what is the cross-price elasticity of demand? Explain your cross-price elasticity..
1. In the 1950s, facing massive unemployment in the cities (much of it disguised in the informal sector), the Kenyan government embarked on a "Keynesian" policy of creating new urban jobs through public investment.
If the Bill and Melinda Gates Foundation were to buy out and destroy the patent for Combivir, which of the following would NOT be one of the effects? Because Colgate owns patent number 5,544,091, only Colgate sells toothpaste with a flip top cap, whi..
Diane Carter is interested in buying a five-year zero coupon bond whose face value is $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?
Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information; M=4000, Px=800, and Py=100, Show in your..
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