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Q. Company XYZ produces cellular phones brand GREENBERRY, at a yearly rate of 500,000 units. Its total fixed costs are $6 million per year, and at its current rate of o/p, its total variable costs for the year will be 80 million. The price of the GREENBERRY is $450. What is the degree of operating leverage for the GREENBERRY?
Company XYZ produces a product Alpha that has a degree of operating leverage of +3.5. Suppose a new order is received, and, the rate of output is increased by 10%. The percentage effect which increase in output will have on the profit made from producing and selling commodity Alpha will be.
Choose whether to hire a new person in the marketing department or upgrade your computer system.
If there were only one seller, illustrate what would be the equilibrium price and quantity.
Discuss one recent price change that you have noticed while visiting your local supermarket. Determine whether or not the price change that you identified was a result of a change in either supply or demand.
Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
Define the correlation between two random variables X and Y. What does the correlation coefficient measure?
The Marginal Product of Labor and the Marginal Product of Capital are given.
Compute the equilibrium price and annual quantity of antidepressants. Compute 1)producer surplus; and 2)consumer surplus in this competitive equilibrium.
Why does the assumption of independence of risks matter in the examples of insurance.
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but in which firms are operating below their minimum efficient scale.
Illustrate what is your suggested mix of pricing also non-pricing strategies
what combination of coal-fired plants and gas-fired plants would minimize construction costs.
Elucidate which firm's product provides the greatest value-created.
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