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Assume Digby expands operations in Asia Pacific in the coming year. In doing so, they have added capacity to fill all demand in-house and have increased automation to reduce labor cost by 10%. For clarity, assume the following are true: Daze material cost is still $12.75. Daze labor cost last year was $9.00. Daze will be priced at $32.50 per unit, in American dollars. Shipping costs from the Americas to Asia Pacific are $2.50 per unit. What will Daze's contribution margin be in Asia Pacific for the coming year?
Maintenance expenses for a bridge on the Ohio river are estimated to be $20000 per year for the first 8 years, followed by two separate $100000 expenditures in years 12 and 18. The expected life of the bridge is 30 years. If i=6% per year, what is th..
18 years ago, a certain part cost $325. The cost index was 244 and now the index is 329. What cost below is closest to the estimated current cost for the item? Item number 16 took 190 minutes to make. If the learning curve rate is 90%, how long did t..
Would you expect the price elasticity of demand for cars to be more price elastic or more price inelastic than the price elasticity of demand for 2015 model year Subaru Outbacks? Fully explain why. Calculate the price elasticity of demand between two..
The pharmaceutical industry has been subject to considerable regulation in bringing drugs to the marketplace. Discuss the benefits and costs to society from such a policy?
Suppose two competing stores each announce a "low price guarantee", meaning that each store would match the prices of the other store of they were lower. Does providing this guarantee masks it easier or more difficult to overcome the prisoner's dilem..
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of dema..
The population of Ectenia is 100 people: 40 work full-time, 20 work half-time but would prefer to work full-time, 10 are looking for a job, 10 would like to work but are so discouraged they have given up looking, 10 are not interested in working beca..
What the slope of the budget constraint? Why is it this value? What is the endowment point? Why must changes in the interest rate cause a rotation in the budget constraint about this point?
Do unexpected monopolistic profits serve any useful function in a market economy? Could additional oil revenue be used to explore and develop new fields?
Assume a monopolist does not practice price discrimination. Which of the following must be true for a monopolist at an output level where price (P) is equal to marginal cost (MC)?
"Anyone who tells you that markets left to their own devices always lead to socially beneficial outcomes is talking utter nonsense." Do you agree with this statement? Defend your position.
What are the advantages of buying a business rather than starting one from scratch? What are the advantages and disadvantages of owning a franchise?
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