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Q. You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.
No. of workers Total Labor Cost Output Total Revenue1 $145 100 $1902 290 105 3803 435 111 8404 680 120 13205 725 125 16506 870 129 17807 1015 131 1800
Illustrate the subsidiary product of the third worker?
Illustrate the subsidiary revenue product of the fourth worker?
Illustrate the subsidiary cost of the sixth worker?
Based on your knowledge of subsidiary analysis, how many workers should you hire? Explain you answer.
q1. calculate the total fixed costs total variable costs average fixed costs average variable costs average total costs
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
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the original manufacturer is deciding whether they should continue production of the toy truck. If the estimated demand is $100,000 trucks, what is the breakeven price for the toy truck? Should you shut down?
Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions.
Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.
Weigh the risk also benefits of outsourcing internationally by corporate America for the standard working person.
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Suppose household saving is $20, the government spending deficit is $4, and investment is $20.
Suppose your firm produces electricity by burning coal. Currently it buys central Appalachia 12,500 BTU per ton coal at the market price of $52 per ton.
Would the sales of pollution rights or certificates be an efficient means of allocating a given amount of pollution.
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