Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Currently, there are enough orders for microchips to keep its factory capacity fully utilized. The company also uses its own chips in the production of control devices. The average total cost (AC) of producing such a device is $500 plus the cost of two microchips. (Assume all of the $500 cost is variable and AC is constant at different output volumes.) Each control device sells for an average price of $1,500.
a) Should the company produce control devices? Is this product profitable? Briefly explain your answer
b) Answer part (a) assuming outside orders for microchips are insufficient to keep the firm’s production capacity fully utilized.
c) Now suppose $200 of the average cost of control devices is fixed. Assume, as in part (a), that microchip capacity is fully utilized. Should control devices be produced in the short run? Explain
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4.
1. a woman and her son are debating about the average length of a preachers sermons on sunday morning. despite the
Find out the ticket price that maximizes revenue. Find the profit-maximizing expenditure on players and the profit-maximizing fraction of games to win.
Venezuela had considerable capital outflows after election of Hugo Chavez. If Venezuela had fixed exchange rates, determine what effect would these flows have had on Venezuela's overall balance and value of the Bolivar
Elucidate the aggregate expenditure function graphically, labeling your graph with the appropriate numerical values.
Export Development Canada (EDC) provides insurance to Canadian exporters for their accounts receivable from foreign buyers. If EDC charges an insurance premium that reflects the average level of risk of the exporting firms, it is only the most risky ..
q.complete the international trade simulation.list at least one benefit also one limitation of international trade you
Illustrate what would be the effect of poor weather on the consumer surplus, producer surplus, deadweight loss.
Find unemployment rate and show HOW:
llustrate what happens to the money supply. Elucidate how would this change the incentive structure facing depository institutions.
q. 1. use the data in the preceding problem to answer the subsequent questions. currently supposethat the united states
Why did Japan's export based economic groth stall in the period 1990-2012? In particular, focus on the differences between the modern
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd