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Alex is the manager of a division of a paper firm that produces copier paper and sells it on the wholesale market. His firm's output represent about 1.5% of total copier paper sales. the wholesale price of copier paper is $3.95 per standard package. His plant engineers report that, at his projected volume, labor costs are $1.00 per package, material costs are $2.00 per package, and other average fixed costs are about $0.7. What price should he charge for his firm's product?
Now suppose as a result of a mandated increase in the minimum wage the wage increases to $80. What would be the implication of this change for this firm?
The company you work for asks you to recommend whether their Mercedes truck should be replaced now or kept in service for an additional 10 years.
Calculate elasticity for each variable. On this basis, examine relative impact that each variable has on demand. Illustrate what implications do these results have for industry's marketing and pricing.
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
What will the effects of the tax be in the short run on industry output and price. Will the price rise by the full ?ve cents in the short run.
Explain would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 50 percent chance that Toyota would discontinue the Highlander.
Explain why China has in recent years been manipulating its exchange rate relative to the dollar, and how it effects this currency manipulation
Illustrate what is the gain in consumer's surplus for ABC fan that can get these sweaters at Target instead of at the ABC.
Explain how much does the customer pay. Explain how much does the government receive as tax revenue.
Consider that two countries, Brazil and Argentina, have the same rates of investment, population growth, and depreciation. They also have the same levels of capital per worker.
Utilize these values at this point on demand to make the subsequent computations.
Illustrate what is Fast Food's elasticity of demand. What does elastic, inelastic, or neither tell us about the elasticity of demand.
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