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Q1. A plant has a capacity of 4100 hydraulic pumps per month. The fixed cost is $504000 per month. The variable cost is $166 per pump, and sales price is $328 per pump (assume that sales equal output volume). What is the breakeven point in number of pumps per month? What percentage reduction will occur in the breakeven point if fixed costs were reduced by 18% and unit variable costs by 6%?
Q2. Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas?
By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
The consumer is indifferent between B and a lottery ticket with probabilities. Construct a set of von Neumann - Morgenstern utility numbers for the four situations.
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Illustrate and explain the movement of the aggregate demand and aggregate supply curve both in the short and long run.
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Rain spoils the strawberry crop, the price raises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week
The election of a new Congress causes consumer confidence to soar as expectations of future economic growth are solid.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations.
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