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Which of the following is NOT a reason why there are economies of scale?
a) spreading fixed costs, such as depreciation and debt service over more units
b) finding process advantage by dedicating resources to individual products
c) increased construction costs by building smaller facilities
d) better bargaining position and quantity discounts on purchased materials
The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate (always, rate/yr) that you are paying.
Consider the types of non-tariff trade barriers and determine which has the most detrimental effect on the U.S. economy from the standpoint of the domestic consumer. Explain your rationale and support it with specific examples.
What policy towards the automakers should we pursue? Should government leaders have provided outright grants to struggling automakers; what about more loans or loan guarantees? Concentrate on using your managerial economics knowledge, tools, and conc..
A monopolistically competitive market consists of __________ seller(s), an oligopoly consists of __________ seller(s), and a monopoly consists of one seller. Monopolists: A monopoly: Barriers to entry:
How will each affect equilibrium price and equilibrium quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on the magnitudes of the shifts, will the answers be indeterminate?
A student has a budget of $200 for their meals outside of the home per week. One possibility is purchasing a meal at a restaurant, which we will call x1, and which costs $20, and a second possibility is purchasing a meal at the school cafeteria, x2, ..
What impact would you expect this increase in the gap in living standards between the richest and poorest to have on income elasticity today? Briefly discuss.
Demand curve is P=41-Q/100 cost of labor is L= 10. The profit in function is Q=10L. What is the marginal revenue product?
Identify what FIDO stands for and how 3M puts FIDO into practice. Assess whether FIDO’s approach could work for other companies or if it is unique to 3M and the products they produce. Write three pages on whether 3M’s specific practice of hiring loca..
Elucidate the effects of an increase in business investment on the short-run macroeconomic equilibrium.
Consider a market characterized by the following demand and supply curves: Qd = 1600 - 20p and Qs = - 900 + 30p. If regulators decide to restrict payments by setting a price ceiling equal to $35, how many units will be sold or bought? Calculate the ..
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.
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