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The wheat harvesting season in the American Midwest is short, and most farmers deliver their truckloads of wheat to a giant central storage bin within a two-week span. Because of this, wheat-filled trucks waiting to unload and return to the fields have been known to back up at the receiving bin. The central bin is owned cooperatively, and it is to every farmer's benefit to make the loading/storage process as efficient as possible. The cost of grain deterioration caused by unloading delays, the cost of truck rental, and idle driver time are significant concerns to the cooperative members. Although farmers have difficulty quantifying crop damage, it is easy to assign the waiting and unloading costs for truck and driver of $20 per hour. The storage bin is open and operated 16 hours per day, 7 days per week, during the harvest season and is capable of unloading 18 trucks per hour. Full trucks arrive all day long (during the hours the bin is open) at a rate of 16 per hour. The cooperative uses the storage bin only two weeks per year. Farmers estimate that enlarging the bin would cut average service time by 40% next year. It will cost $200,000 to enlarge the bin during off-season. How long will it take the farmers to recoup those cost cooperatively through waiting cost savings?
Evaluating new vehicle technologies to reduce costs is important for companies like UPS also other companies involved in parcel delivery services.
Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2014, Susan adjusted gross income is $38,000 and Stan is $12,000 and both are self-employed. They also have $500 in interest income from tax-exempt bonds. The Co..
A protective Tariff is often used by governments to attempt to control trade between nations to protect and encourage their undeveloped local industries, businesses. Using the Mundell-Fleming model, which of the following prediction is accurate under..
What are the economic and political arguments for regional economic integration? Given these arguments, why don't we see more substantial examples of integration in the world economy?
What is monetary policy and who is responsible for its implementation? What is the central bank and what does it do? What are adverse selection and moral hazard?
The demand curve for videos has shifted to the right. Illustrate what could have caused it.
Evaluate the effect of each of these four changes on demand based on the estimates provided and what is the net effect of all the changes taken together
borrow 1000 at t=0. Make exact interest only payments at the end of each year for 4 years and at the end of the 4th year repay the entire principal in addition to the last interest payment. borrow 10000 at t=0. Pay a principal payment each year of 25..
People often argue that economic rewards in society should be meritocratic, that is, that everyone should have an equal opportunity to get ahead and those that do succeed because of their greater ability, hard work, and so on, should then be allowed ..
Explain carefully how oligopolies can use product differentiation strategies to increase barriers to entry. Consider both brand name creation and product line proliferation strategies.
Explain what are two initial responsibilities of the financial manager. From the Internet what are two additional ideas about the other activities that financial managers are involved in on a day-to-day basis.
Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. Is Bridget making the utilit..
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