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..
Scarcity and oppotunity cost, how manager can apply scarcity and oppotunity...
how manager can apply scarcity and oppotunity cost in managerial decision making
Theory of consumer behaviour, Theory of Consumer Behaviour Through the...
Theory of Consumer Behaviour Through the study of theory of consumer behaviour we can be able to explain why consumers buy more at a lower price than at a higher price or put
Case let, Is Indian companies running a risk by not giving attention to cos...
Is Indian companies running a risk by not giving attention to cost cutting?n..
What is normative economics, What is Normative economics It is concerne...
What is Normative economics It is concerned with varied corrective measures that a management undertakes under lots of circumstances. It deals with goal determination, goal dev
Quadratic cost function, Using the CD data estimate a quadratic cost functi...
Using the CD data estimate a quadratic cost function. Test the hypothesis that there is diminishing marginal cost. Be sure to state what critical value you are using. Then, using t
#Profit as a business Objective, Write on one theory of profit. Profit as r...
Write on one theory of profit. Profit as rent of ability: one of the most widely known theories of profit was propounded by F.A. Walker. According to him profit is the rent of is t
Disguised unemployment, Disguised unemployment Situation where some pe...
Disguised unemployment Situation where some people are employed apparently, but if they are withdrawn form this job, total production remains the same. In most developing coun
Distinguish between positive and negative externalities, Question 1: 1 ...
Question 1: 1 Explain the importance of barriers to entry in the control of Monopoly rents. 2 Discuss the extent to which competition leads to market promotion? Questi
GDP, real GDP is increasingly criticized for its alleged failure to adequat...
real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?
Explain the short run production function, Q. Explain the Short run product...
Q. Explain the Short run production function? Discussion of production up to now has ignored the time required to build production facilities. There is a requirement to take in
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
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.