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You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $700,000 per month, and you have contractual labor obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper. If sales fall by 20 percent from 1,000,000 papers per month to 800,000 papers per month, what happens to the AFC per paper? Instructions: Round your answers to two decimal places. AFC per paper from $ per paper to $ per paper. What happens to the MC per paper? What happens to the minimum amount that you must charge to break even on these costs? Instructions: Round your answers to two decimal places. The amount from $ per paper to $ per paper.
Ginger's utility function is U(x, y) = x2y, with associated marginal utility functions MUx = 2xy and MUy = x2. She has income I = 240 and faces prices Px = $8 and Py = $2. a) Determine Ginger's optimal basket given these prices and her income.
In his current job, Smith can work as many hours per day as he chooses, and he will be paid $1/hr for the first 8 hours he works, $2.50/hr for each hour over 8. Faced with this payment schedule, Smith chooses to work 12 hr/day.
What are the attributes of a "good" econometric model? What are different types of specification errors? Can one or more of these errors occur simultaneously?
Suppose Alfred and Bart are originally paid $10 per hour at In N Out, and they originally choose to each work 8 hours per day. Explain how a wage decrease to $9 per hour could make Alfred choose to increase work hours per day, but could make Bart ..
what is the percentage increase in production when valued at 2009 prices is 21.6percent. answer to 1 decimal place.2008
It is paying $30 in interest at the end of every 6 months, and it matures in 4 more years. Compute the its coupon rate. Compute its current value, assuming the market interest rate for such investments is 5% per year, compounded semiannually.
Compare the equilibrium levels of consumption C, government spending G, and planned investment I in Parts g and h. Based on this comparison, why might some economists prefer expansionary fiscal policy while others prefer expansionary monetary poli..
Total annual taxable income is $210,000; tax is: 2. Your company is in the 34% tax bracket; for an additional $32,000, your incremental tax is: 3. Your total taxable income is $64,000; you are considering an investment that will net an additional $..
Jack is a talented investor, but his earnings vary considerably from year to year. In the coming year he expects to earn either $250,000 with good luck or $90,000 with bad luck. Somewhat oddly, given his chosen profession, Jack is risk averse.
Suppose that 1984 the total output in a single good economy was 7000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 2004 the price per bucket of chicken was $16 and that 22,000 bucke..
Suppose a natural monopolist has fixed costs of $24 and a constant marginal cost of $2. The demand for the product is as follows: Price (per unit) $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 Quantity demanded (units per day) 0 2 4 6 8 10 12 14 16 18
Delta Software earned $10 million this year. Suppose thegrowthrate of Delta's profits and the interest rate are bothconstant and Delta will be in business forever. Determine the value of Delta Software
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