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The wall street journal reported that Japan’s No 4 automaker-Mitsubishi Motors- announced a major restructuring plan in an attempt to reverse its 6 percent declining global sales,. The company's sales were particularly hard hit in North America, where its sales fell 29% due to combination of an unusually large number of bad loans and reduced demand resulting from tightening of its lax credit criteria. in Japan , sales have slipped 56% (excluding minivans) due, in large part, to automobile recalls and attempt to cover up faulty products. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its production process. prior to restructuring Mitsubishi's marginal rate of technical substitution is 0.15(in absolute value). to hire workers, suppose that Mitsubishi must pay the competitive hourly wage 1.330 yen. in the study of its production process and markets where capital is procured, suppose that Mitsubishi determines that its marginal productivity of capital is 0.5 small cars per hour at its new targeted level output and that capital is procured in a higly competitive market. The same study indicates that the average selling price of Mitsubishi’s smallest car is 950,000 yen. Determine the rate at which Mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output. to minimize costs Mitsubishi should hire capital and labor until the marginal rate of technical substitution reaches what proportion?
A new car is purchased for $12,000 with a 10% down, 9% loan. The loan is for 4 years. After making 30 payments, the owner wants to pay off the loan's remaining balance. How much is owed?
What type of organizational structure is the company currently using?
I think people would agree that the one most ubiquitous tool for welfare measurement in the economic literature and in economic education is the notion of total surplus. Throughout it's history, total surplus has been criticized several times and on ..
A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual O&M costs are $105,000. At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer..
Suppose the government of Country L runs a balanced budget in Year 1 and a budget surplus in Year 2. Using a supply and demand graph, depict this change. Label the axes, curves, and the beginning and end equilibrium real interest rates and equilibriu..
Consideration is being given to the investment of $420,000 at time zero for machinery and equipment to be depreciated using 7 year straight line depreciation starting in year 1 with the half-year convention. Annual sales are projected to be $450,000 ..
When should this item be reordered. What could be the risk of stockout would result from a decision not to have any safety stock.
Which of the following would shift a supply curve in a perfectly competitive market for a good? Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. ..
Which of the following is true concerning negative externalities?
find out an expression for her marginal cost and her average cost per patch of grass as a function of the amount of grass she gets from every patch
Suppose you detect heteroskedasicity and /or auto correlated errors in your regression. What is the difference between (I) calculating robust errors versus (ii) conducting a weighted least squares or feasible generalized least squares analysis.
Critics argue that countries relying on primary exports will experience problems of fluctuating and declining terms of trade. Explain the theory and evidence behind these arguments, and how these problems can reduce the gains from primary export t..
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