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Last year, a toy manufacturer introduced a new toy truck that was a huge success. The company invested $2.5 million for a plastic injection molding machine (which can be sold for a $2 million) and$100,000 in plastic injection molds specifically for the toy (not valuable to anyone else). Labor and the cost of materials necessary to make each truck is about $3. This year, a competitor has developed a similar toy that has significant reduced demand for the toy truck. Now, the original manufacturer is deciding whether they should continue production of the tor truck. If the estimated demand is 100,000 trucks, what is the breakeven price for the toy truck? Should you shut down?
A program evaluation is the systematic examination of any activity undertaken by government to make a determination about their effects, both short and long term.
In what ways does the concept of the prisoner's dilemma contribute to our understanding of environmental problems Regarding global warming, deforestation, and ocean dumping, what are the sources of the problems (political, economic, social) Who are m..
increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Elucidate do you agree with the student's reasoning.
How are customer expectations today different from customer expectations of say 10-15 years ago? What are some reasons that contribute to that change's expectations regarding the level of customer service received?
If a consumer goes to buy an entertainment center at Best Buy for $2,000 and the mpc is .80, what will be the effect on the economy? What if the mpc really turns out to be .75? Why is there such a difference?
Suppose that an individual's demand for the number of physician visits per year, Q, can be represented by the following equation: Q=5-0.40P, where P, the market price of an office visit, equals the marginal cost of $100. Determine the efficient numbe..
Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. How many franchises should CC award given that it determines the prices the stall holders can charge and that it will h..
What are exchange rate stabilization techniques for big firms with international branches that try to reduce their tax liabilities?
You owe $1000 on your credit card. The APR is 24%, compounded monthly. The credit card company indicates that your minimum payment is $22.44. If you make only the minimum mouthy payment, how long will it take for you to repay the $1000 balance (assum..
The annual additional energy requirement is 350,000,000 kilowatt-hours. The cost of energy from Canada is 1.48 cents per kilowatt-hour for the first year. The price will be escalated at 4 percent annually for the 20-year contract period.
When recording devices were first invented almost 100 years ago, musicians could suddenly supply their music to large audiences at low cost. How do you suppose this development affected the income of the best musicians? How do you suppose it affected..
Opportunity cost is defined:
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