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You are a manager at Glass Inc., a mirror and windows supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results from the study are summarized in the table in the next page, and are based on the 5 units of capital currently available at your plant. Workers are paid $50 per unit capital costs are $10, and your encapsulated windows sell for $each. Given this information, optimize your human resource and production decision. Do you anticipate earning a profit or a loss? Explain carefully.
Labor
0
1
2
3
4
5
6
7
8
9
10
11
Output
30
60
80
90
95
What is the accounting profit that Fred would get in his venture? What is the economic profit that Fred would get in his venture? Would you recommend Fred go ahead with his venture? Why?
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Use a diagram to show the consumer surplus , producer surplus and total surplus of the market for groceries in this small town. Now suppose these small supermarkets successfully form a cartel which behaves like a monopoly, How does this cartel affect..
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