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The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell to earn a pro t of $10,000 per month. The price of each television set is $300, and the average variable cost is $100. a.What is the required sales volume if the Abner Corporation's monthly xed costs are $5,000 per month? b.If the rm sells each television set at a price of $350 rather than $300, what is the required sales volume? c.If the price is $350, and if average variable cost is $85 rather than $100, what is the required sales volume?
For a small firm in an extremely competitive industry, marginal revenue is always equal to price because: each firm has large fixed costs. if consumers increase their demand for the product, producer surplus falls. each firm has large economies of sc..
Three products that you believe are provided by a "pure" monopoly, or at least by firms with a high degree of monopoly power. List substitutes for the products sold by each of these "monopolies".
According to our discussion in class, an Economic model of the decision of how fast to drive indicates an individual should choose the speed at which:
Describe the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
Andy purchases only two goods, apples (q1) and kumquats (q2). He has an income of $40 and can buy apples at $2 per pound and kumquats at $4 per pound. His utility function is U(q1,q2)=3(q1)+ 5(q2). What is his marginal utility for apples and what is ..
Explain why lean manufacturing requires a stable demand environment. Describe how success to successful system archetype works. What should be done about it.
The actual multiplier effect in the U.S. economy is less than the multiplier effect in the text examples because: the real-world MPS is larger than the MPS in the examples.
Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on..
A more serious problem with input-based pay systems (e.g., a wage her hour), relative to an output--based system, is:
Suppose that marginal propensity to save is equal to 0.25, and the government increases its spending by $200 billion. This new increase in spending is financed by a fresh increase in taxes equal to $200 billion. As a result of this, GDP will:
Why was the xerox corporation chosen to be in the top 100? what has been the company's history as rewards outsourcing as a source of revenue? and how does the firm describe, or imply its value proposition?
A customer is closing operations and has equipment to dispose. Reservation of eqpt, is 250K. There is a .4 chance a buyer will pay 300K and a .25 chance the buyer will pay 350K and a .1 chance the buyer will pay 400K and a .25 chance it will not sell..
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