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Josh Ritchey has just been hired as a cost engineer by a large airlines company. Josh's first idea is to quit giving complimentary cocktails, wine, and beer to the international flying public. He calculates this will save 5,000,000 drinks per year, and each drink costs $0.50, for a total of $2.5 million per year.Instead of complimentary drinks, Josh estimates that the airlines company can sell 2,000,000 drinks at $5.00 per drink. The net savings would amount to $12.5 million per year! Josh's boss really likes the idea and agrees to give Josh a lumpsum bonus now equaling 0.1% of the present equivalent worth of three years of net savings. If the company's MARR is 20% per year, what is Josh's bonus?
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing and able to pay for this outputis $40 per unit. If it priduces this output, the firms a..
Year price quantity demanded Real Income Price of Substitute 1 .95 200 11000 .65 2 1.10 180 11000 .65 3 1.10 190 11500 .65 4 1.10 200 11500 .90 5 1.10 170 11500 .90 6 .99 190 11500 .90 7 .99 175 10500 .90 8 .99 150 10500 .62
In this economy, all production output goes to either consumption or savings. The saving rate is fixed at s where 0
Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM curve, the I + G +EX curve, and the equilibrium level of real GDP. Illustrate the effect of an increase in the level of autonomous saving.
Maha claims that she could collect 10 oranges or can catch one fish per hour from pond besides their hometown in village while khadija claims that she could collect 2 oranges or 2 fish per 2 hours.what is the opportunity cost of catching fish for ..
Knappland is at Y = Yn , ue = uen , and P = Pe. President Ewe is concerned about the upcoming election. He pushes tax cuts through the legislature. a. Use the AS-AD to illustrate the effects of the income tax cut
Given the production function Y=AK^0.3L^0.7 if output grows by five percent, the capital input grows by five percent, and the labor input grows by two percent, calculate the Solow residual. Calculate the growth rates of output per worker and capit..
A monopolist faces a demand curve given by: P = 220 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $40. There are no fixed costs of production. How much output sho..
you are asked to decided between two projects based on annual equivalent worth A B -$10,000 -$12,000 $6,000 $7,000 $5,000 $8,000 $4,000 a) what assumption do you need to make in comparing these mutually exclusive revenue projects
Two cournot duopolists produce in a market with a demand P(Q)=100-Q. The marginal cost for Firm 1 is constant and equals 10. The marginal cost for Firm 2 is constant and equals 25. The two firms want to merge, which would leave a monopoly.
A frim determines that X units of its product can be sold daily at P dollars per units per day is C(x) =120-1/2p and where the cost of producing X units per day is C(X)=10+30x A) Assuming that the production capacity is 40 units per day, determine..
Suppose a depositor comes to the bank and withdraws $200 in cash. Show the banks new balance sheet assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves
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