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Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is "high enough" so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30. Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences managerial decisions.
Show the competitive position of 5 or more different firms within this industry
How many units can be produced if a country uses all of its resources on health care and what is the opportunity cost of producing 5 more units of education?
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.
With lower values for gasoline than a couple of years before will Americans start spending again? If they do, what will they spend the savings on Vacations?
Illustrate what are the limits to the exchange rate at which it makes sense to produce in both countries.
Describe the benefits and drawbacks of dynamic pricing for this particular company.
Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?
Elucidate why the U.S. would subsidize the short run cost of production for tobacco farmers in foreign countries.
Illustrate what sectors of the economy are likely to expand or recover in the near future. Illustrate what sectors may be the most vulnerable in the next year.
The low wages offered by employers in the state have given fewer teenagers the incentive to find summer employment. Instead of working all summer, the way we used to do, today's teenagers slack off and cause trouble. To address this problem, I pro..
What are the relationships between the economic concern you selected and that specific country's economy? What trends do you see in the data sets?
The economy will contract or shrink if leakages exceed injections. Are you agree with this statement.
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