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Pat's pizza is a prince taker. It has the following hourly costs:OUTPUT: (PIZZA PER HOUR): 0,1,2,3,4,5,6TOTAL COST: (DOLLAR PER HOUR): 10,21,30,41,54,69,86
a) If pizzas sell for $14, what is Pat's profit-maximizing output per hour? What is her profit or loss?b) What is Pat's shutdown point? (Hint: how low can Pat's price get before is shuts down?c) Graph Pat's MR, MC, ATC on the same diagram.d) What price will cause other firms with costs identical to Pat's to enter the industry?
Determine the present worth of 5 annual deposits of $1,200 at the end of years 1 through 5, followed by 4 equal annual withdrawals of $700 at the end of years 4 through 7. Note that both years 4 and 7 will have a depsoit and a withdrawal. Interest..
A CNC machine was purchased for $120,000 and has a five-year depreciable life. The shipping and handling cost were $15,000. The annual operational cost of the system is $10,000. The estimated salvage of the machine is $20,000 at the end of five ye..
Stephen Zehnder, an enterprising engineer, wants to get into business. He is looking at the following two alternatives. He has compiled the cost data for both alternatives as shown in table below. If Stephen wants to have at least a rate of return..
Public sentiment now changes such that depositors cut their cash holding in half and deposit the other half in time deposit accounts. The reserve requirement on DDs remains 25%, on TDs it remains zero, “m” remains 0, and banks continue to hold no ex..
the Advisability of which action to take depends on how the market will respond to the new product.If demand is high, then its worthwhile to make the extra investment for special facilities and equipment needed to produce the component internally.
An Economics section at a large university keeps track of its majors beginning salaries. We address the question of the value of taking econometrics
You employ five workers and deciding whether to hire an additional help. MPL of new hire is expected to be 500 units per week. The market wage rate for the skill you are looking for is $1200 per week.
Determine the two equal deposits, the first deposit required now and the second deposit at the end of year 6, so that you can withdraw $2,000 at the end of each year for the next 12 years. Assume that money earns 4% interest, compounded monthly.
A typical 2,000 sq. ft. home using standard concrete forms costs $120 per square foot to construct and uses $300 per month average to heat and cool. Calculate the IRR on a home using your company's insulated concrete forms on a typical 2,000 sq. f..
q1=20 Q2=15 Q3=27 mARKET EQUILIBRIUM IS $45 price at A=85 C=5 F=59 G=31 what is the dollar value of the dead weightloss when output level q2 is produced what is the total surplus wen output q2 is being produced
Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10 220 15 300 20 360 25 450 30 600 35 770 40 960 What is the marginal cost and average total cost for the firm at each level of output
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..
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