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An unprofitable company has employed me to determine whether they should shut down there unprofitable operation or not. There are currently 70 workers at the firm that produce 300 units of output per day at the price of $30 per unit. Their workers daily wage is $100; the cost of other variables inputs is $500 per day and the firms fixed cost are unknown.
At the rate of $30 per unit X 300 units of output per day the firm's total revenue is $9,000. The $9000 dollars is the benefit of operating the facility, however the cost of operating the facility is 70 workers X $100 wages per day, $7,000 and the cost of other variable inputs is $500 per day for a total operating cost of $7,500 per day. Because the firm's revenue exceeds the operating cost it is my recommendation the firm should continue to operate at a loss.
Suppose ZCorp has following short run production function Q = 50X - 2X^2 where X is the only variable input used by ZCorp to product its product, Q.
David Ding advertises on a local radio station. For last 6-weeks, the manager has kept records of the number of minutes of advertising that were bought, and the sales for that week.
Estimate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.20 per share for period,
Assume the Kalamazoo Competition free Concrete's demand function is D=5,000-50P, its marginal cost is 40 dollar per cubic yard,
Woodland Instruments, Company operates in highly competitive electronics industry. Prices for its R2-D2 control switches are stable at $100 each.
Assume the market price of sugar is twenty-two cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound.
The following table demonstrate yearly sales information for Landrover, Inc., over the ten-year 1998-2008 period:
Discuss and explain two factors that would increase demand for labor. Suppose if the market price of the good or service that a firm produces increases, what happen to the demand of labor
A corporation requires $500,000,000 to finance a major project in the firm. The company is expected to generate a total of $80,000,000 in earnings next year with the addition of this project.
Economists estimated the following cost function for X Company, Compute the ATC, AVC and MTC and plot on another graph.
Describe any two causes of economies of scale or diseconomies of scale. How is the U shape of long run ATC different from U shape of the short run ATC
The table below demonstrate the demand for Fidgets over an eight month period. Calculate a four-period moving average forecast for September.
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