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The Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one jig is: If the special order is accepted, Immanuel will not incur any selling expense; however, it will incur shipping costs of $0.30 per unit. Total fixed production cost would not be affected by this order. At what selling price per unit should Immanuel be indifferent between accepting or rejecting the special offer?
How do the economies of the countries you selected compare to the U.S. - Is either of the selected countries still in an agrarian phase of economic development?
Who bears the cost of import barriers protecting a job where the industry employing labor has lost its comparative advantage? Consider the use of tariffs on steel imports into the U.S. during the recent Bush Administration.
4. Suppose that the economy-wide expected future marginal product of capital is MPKf =20 - 0.02K, where K is the future capital stock. The depreciation rate of capital, d, is 20%per period. The current capital stock is 900 units of capital. The price..
Explain how would the subsiquent changes in price affect total revenue. What are the major determinants of price elasticity of demand.
1. Suppose there is a small, closed economy that produces bananas. The domestic demand and domestic supply curves for bananas in this small, closed economy are given as:
Consider an economy described by the following: C' = 3.25 trillion; I' = 1.3 trillion; G' = 3.5 trillion; T' = 3.0 trillion; NX' = -1.0 trillion; f = 1; b = 0.75; d = 0.3; x = 0.1; ? = 1 and r' = 1. a. Derive expressions for the MP curve and AD cu..
Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?
Marketing Plan for Café Paradise
Use the data in the PPT provided to write a paper on regression analysis. The regession is on determining poverty levels in sub saharan africa, and is split between the two.
If the Federal Reserve System wanted to tighten the money supply, the most powerful combination of actions would be to a. raise reserve requirements, lower the discount rate, and buy government securities b. raise reserve requirements, lower ..
Given the supply curve from part a. the price of a Picasso Blue Period work will be entirely dependent on what factor(s)? Draw a diagram showing how the equilibrium price of such a work is determined.Why is this supply curve different from ones you..
Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate and which contract should the player accept, based on the concept of present valu..
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