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Suppose a company is producing 1000 units of bottled power drink priced at $5. It is using a manufacturing process with a fixed cost of $1450 and a variable cost of $2.75 per unit (AVC).
Calculate the DOL and break even point for this production process. Is the company breaking even.
If the company installs updated machinery its fixed costs rise to $2000 and AVC drops to $2.25. Calculate the DOL and break even point.
At what production level should the company switch from the old machinery to the upgraded one.
Suppose you manage a United States based firm that makes shoe laces that you sell in a highly competitive market your shoe laces are considered a standardized commodity through your consumers
What is a convertible bond and why do investors find such bonds attractive? What advantages do convertible bonds have for the issuing firms? What stakeholder group might be harmed when a firm issues convertible bonds?
General Electric has frequently placed managers together to work on teams. Often the work project is only for a short period of time.
Coke and Pepsi have sustained their market dominance for more than a century. General Motors and Ford have been hard hit by competition. In one paragraph, explain what economic factors might account for these industry differences.
John Adams wrote in 1814, "Democracy never lasts long. It soon wastes, exhausts and murders itself. There never was a democracy yet that did not commit suicide."
Define and explain the relationship between total revenue, average revenue, and marginal revenue for a monopolist. What is monopoly profit Should a monopolist produce quantities of product greater than which would maximize profiits
Defines the price of the imported good as the foreign market price before it is loaded into the ship, train, or plane for shipment to the importing country.
What are the equilibrium price and quantity? How much revenue do kumquat producers receive when the market is in equilibrium? Draw a graph showing the market equilibrium and the area representing the revenue received by kumquat producers.
A consumer’s utility function is U(x, y) = 2xy2 . The price of x is Px, theprice of y is Py, and the consumer’s income is I. (x and y do not have to be integers.)a) Derive the equation of the consumer’s demand curve for x.b) With y on the vertical ax..
Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific U.S. company by identifying its..
What employees are involved, what are their perceived inefficiencies, and how are they compensated and evaluated?
In the Middle Ages, goldsmiths took in customers' deposits (gold coins) and issued receipts that functioned much like checks do today. People used the receipts as a medium of exchange. Goldsmiths also issued loans by writing additional receipts ag..
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