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Auto-fit is a multidivisional firm that produces auto parts. It has the capacity for annual production of 100 units of a particular part. The marginal cost of producing each unit is $10. These units can be sold internally either to other divisions or to external customers. The external market price is $20. The allocated share of corporate overhead for each part produced is $5. Total corporate overhead expenditures do not vary with the production of the part. How many units of the part should the company produce? What is the theoretically correct transfer price (should the company decide to transfer the part internally)? Explain.
Describe any two causes of economies of scale or diseconomies of scale. How is the U shape of long run ATC different from U shape of the short run ATC
fast food chains like mcdonalds burger king dominos pizza and cafe coffee day operate all over india . therefore the
Create a list of three best practices to follow in the field of managerial economics and globalization. Provide a rationale for your response.
Dr. Filly invests $100 in a risky asset and a risk free asset. The risky asset has an expected return of 12 percent and a standard deviation of 15 percent, while the risk-free has a return of 5%.
Assume that the demand for a gas station is given as PD = 2.06 - .00025QD. The marginal cost is $1.31 per gallon. At his current $1.69 price,
7. problem-solving question use the following data for a firms output at various levels of employment l to calculate a
Develop your own framework and process/method for evaluating economic issues and problems based on the Bible. Describe your approach in enough detail that the reader can apply it to real world problems.
question you are in the market for a new refrigerator for your companys lounge and you have narrowed the search down to
case 1 - demand estimation and elasticity soft drinks in the u.s.nbspnbspdemand can be estimated with experimental data
1.Consider situations where you might consider swapping items with someone. Why are such situations relatively rare? Can you think of circumstances in which this might be more common?
Assume that, prior to other company's entering the market, the maker of a new smartphone earns $100 million per year. By reducing its price by 50%,
The hourly wage rate is $6, hourly rentail rate for capital is $8. The production function I found to be q=10K^.5L^.5 The captital if fixed at 225 hours in the short-run.
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