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1) Two suppliers have been contracted by a government agency to provide a total of 250 hours of training services to help agency employees learn how to use a new computer system. The marginal cost curve of firm 1 is MC1=15+.4Q1, while the marginal cost curve for Firm 2 is MC2=30+.6Q2. There are no fixed costs. Firm 1 provides 175 hours of training services each week, while firm 2 provides 75 hours of training services.
What is the marginal cost of training for firm 1 at 175 hours of training?
What is the marginal cost of training for firm 2 at 75 hours of training?
What is the total cost to firm 1 of providing 175 hours of training?
What is the total cost to firm 2 of providing 75 hours of training?
Bayer is selling aspirin in both North America and Europe. The elasticity of demand in Europe is -1.5, but -1.4 in North America. It costs Bayer $2 to make a bottle of aspirin. Bayer sells 20 million bottles of aspirin quarterly in Europe, and 15 mil..
Describe the Heckscher-Ohlin model (also known as the factor endowment). How does it predict countries will emphasize their comparative advantage?
It is suggested that perfectly competitive firms are price takers. Althought one rarely, if ever, has an opportunity to test this in the real-world, it is equally rare that the customers goes into any business establishment and tells the seller what ..
Perpetuity A pays $ 100 at the end of each year. Perpetuity B pays $ 32 at the end of each quarter. The present value of Perpetuity A is $ 1428.57. Calculate the present value of Perpetuity B using the same effective annual rate of interest.
A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?
What is “effective demand” according to keynes? How can there be a lack of effective demand? How did keynes explain that aggregate production and aggregate spending might not be equal? What happens if aggregate production is greater than aggregate sp..
Which are the top 5 lines of business of SAP on latin-america and the ones with the highest growth potential, again support the reasons you selected them with figures.
Assume that before the price of X2 fell, Fred had exchanged all of his inheritance of X1 and X2 for money, planning to use the money to finance his purchases later, explain how much of X1 & X2 will Fred consume after P2 fell to 1.
The component of Planned AE (the quantity demanded of GDP) MOST sensitive to a change in interest rates is....
Lightweight personal locator beacons are now available to hikers that make it easier for the Forest Service's rescue teams to locate those lost or in trouble in the wilderness. How will this affect the costs that the Forest Service incurs?
A.B. Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. ..
Mr. Smith has saved $1,800 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7,500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5,000 per year. In the eighth year, he decided to ..
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