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A large wood products company is negotiating a contact to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $800,000 per month. The variable cost per thousand board feet is $155.50. The price charged will be determined by p=$600 - (.05)D per 1,000 board feet.
A) For this situation, determine the optimal monthly sales volume for this product and calculate the profit (or loss) at that optimal volume.
B) What is the domain of profitable demand during a month?
Recessions often are related to the fact that consumers consume less of many of the goods they typically consume. During a recession unemployment typically increases. Relate this behavior to the budget line and indifference curves that we studied.
How are the forecasts likely to be inaccurate? What do you think is driving inaccuracy? How might this problem be solved?
The state if Arizona decided to boost its own minimum wage rate by $1.60/hr. This pushed the wage rate earned by Arizona teenagers above the equilibrium wage rate in the teen labor market.
The third largest city of a country has a population of 12.5 million.
Suppose that the demand curve for wheat is Q = 100 - 10p and that the supply curve is Q = 10p. What are the effects of a specific tax of t = 1 per unit on the (1)equilibrium, (2)government tax revenue, (3)CS, (4)PS, (5)welfare, and (6)DWL?
A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Why is less concentration a problem for ..
You bought a $100 used guitar and agreed to pay for it with a single $120 payment at the end of 6 months. Assuming semi annual (every 6 months) compounding, Calculate the nominal interest rate, Calculate the effective interest rate
The operating cost of a broiler is $20,000 per year for years 1 and 2 and then it increases by 6% per year through year 10. What is the equivalent uniform cost of the broiler (years 1-10) at an interest rate of 9% per year
Mary Graham worked as a real estate agent for Piedmont Preoperties for 15 years. Her annual income is approximately $100,000 per year. Mary is considering establishing her own real estate agency. Determine the (pre-tax) accounting profit for this ve..
suppose that the carnival and the circus have both come to town and are both o?ering free admission. you have 6 free
Suppose that in voting fraud around the country the government is forced to spend billions of dollars in legal fees. Analyze the effects of such a massive increase in government spending in both the classical and fixed price Keynesian models when the..
Afterward on same day Jane Harris discussed a loan for $5400 at same bank. Exemplify after these transactions, the supply of money.
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