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Suppose the fixed cost of a Christmas trees business is $7,000 and sunk. The variable cost for each tree is $20. According to the forecast, the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year. What will you advise the owner to do? Explain your answer. b) Suppose the estimated fixed cost of a Christmas trees business is $7,000 and not sunk. The estimated variable cost for each tree is $20. According to the forecast, the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year. What will you advise the owner to do? Explain your answer.
Tom works a 12 day. 6 hours are no incentive and the rate is $20 per hour. He also completes 16 tasks that are incentive based and rate is $15 per hour. How much did Tom make in his 12 hour shift what is his combined hourly wage?
The government is considering undertaking one of the four projects A1, A2, A3, A4. These projects are mutually exclusive, and the estimated present values of their costs and of their benefits are shown in millions of dollars as follows.
Suppose that Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000.
Presume that there are two hats. Hat A contains one red and four blue marbles. Hat B contains two red and three blue marbles.
when advanta corp. decided that it wished to begin charging a fee to holders of its credit cards for periods during
Determine the advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service. Provide support for your response
A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups. Cost-benefit analysis can be applied to individual decision-making and public choice th..
Exchange in an island economy.robin and terry are stranded on a deserted island and consume two products, coconut and fish. In a day, robin can catch 2 fish or gather 10 coconuts, and terry can catch 1 fish or gather 1 coconut.
How does an increase in the currency-deposit ratio affect the money multiplier? What is the effect of an increase in the reserve-deposit ratio? Explain the direction of changes in both cases in terms of bank balance sheets and the ability of banks to..
Beer and pizza are compliments because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplies, quantity demanded, and the price in the market for pizza.
Since actual budget deficits surpassed 10 percent of GDP in 2009:
Why do shifts in production function takes place & how does it affect operational efficiency?
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