Customer Service Chat
Get quote & make Payment
Help w/ Question, Managerial Economics
You have opened your own word processing service. You have already
bought a special computer needed for word processing and paid $5,000
for it. However, due to the cost changes in the computer industry, the
current price of an equivalent machine is $2,500. You could sell any
used machine for 200 dollars – and no machine can be used for more
than one year. If you were not word processing, you could earn $20,000
per year at an alternative job. Assume that the interest rate is 10%.
You can also hire an assistant who can do everything that you would do
for $20,000 per year, and you would still continue to do word
processing. One person using one computer can produce 11,000 typed
pages per year, and the price per page for your service is $2.
Calculate the following three options:
You are considering three options:
(1) leave your business the way it is
(2) expand your business by hiring an assistant, or
(3) shut down all operations.
Based on the costs and revenues above, which should you do? Explain
and show any relevant calculations.
Posted Date: 8/27/2012 4:47:00 PM | Location : United States
Ask an Expert
Help w/ Question, Assignment Help, Ask Question on Help w/ Question, Get Answer, Expert's Help, Help w/ Question Discussions
Write discussion on Help w/ Question
Your posts are moderated
Write your message here..
Explain the shut down point, Q. Explain the Shut down point? ShutdownP...
Q. Explain the Shut down point? ShutdownPoint: With MR = MC, firm attains equilibrium at point E where it produces OM amount of the output. To produce this output, firm incur
Disposable income, Disposable Income This is the income which househol...
Disposable Income This is the income which households actually have available to spend or to save. To calculate disposal income, which is indicated by Ya, the statistician mu
Policy conflicts, Policy conflicts In their attempts to achieve the po...
Policy conflicts In their attempts to achieve the policy objectives, governments often face what are called conflict of objectives. These arise partly because unlike private
Elasticity, determinants of price expectation of elasticity
determinants of price expectation of elasticity
Elasticity of demand, types of elasticity
types of elasticity
International commodity agreements, International Commodity Agreements (ICA...
International Commodity Agreements (ICAS) International Commodity Agreements (ICAS) represents attempts to modify the operation of the commodity markets so as to achieve vario
Regressive tax, REGRESSIVE TAX A tax is said to be regressive when its...
REGRESSIVE TAX A tax is said to be regressive when its burden falls more heavily on the poor than on the rich. No civilized government imposes a tax like this.
Define the natural monopoly, Q. Define the Natural Monopoly? Natural M...
Q. Define the Natural Monopoly? Natural Monopoly: Natural monopoly is because of natural factors. For illustration, a particular raw material is concentrated at a specific pl
Contracting and insider-outsider models of unemployment, CONTRACTING AND IN...
CONTRACTING AND INSIDER-OUTSIDER MODELS OF UNEMPLOYMENT From the Walrasian assumption of a market-clearing wage on efficiency considerations - it was postulated th
Optimum combination of resources, Optimum combination of resources The...
Optimum combination of resources The firm can maximise output given costs. That is when the entrepreneur attains the highest isoquant given a particular Isocost. At t
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.