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An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 100 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required to produce a unit is 5. The average labor rate is 12 per hour. The materials cost 14 per unit. Overhead for an additional 100 units is estimated at 50% of the direct labor cost. If the company wants to have a 30% profit margin, what should be the unit price to quote?
Suppose that the market demand for a new drink is given by P = 30 – Q and the marginal cost to produce this new drink is $3. What is the monopoly price of this new drink? What price would this new drink sell for if it sold in a competitive market?
When appropriate, the optimal solution to a maximization linear programming problem can be found by graphing the feasible region and: finding the profit at every corner point of the feasible region to see which one gives the highest value.
what is elasticity? identify products which have an elastic demand. identify products which have an inelastic demand.
In an effort to stop the migration of many of the automobile manufacturing facilities from Detroit area, Detroit's city council is considering passing a statute that would give investment tax credits to auto manufacturers.
Briefly explain the meaning of MRTS for this production function and what is elasticity of substitution when the capital-labour ratio changes from 1/10 to 1/30?
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The SEC regulations require u.s. corporations to publish operating results on a quarterly basis. How does this short term time frame impact long term profit maximization?
One of the reasons Joseph SchumPeter argued that capital was doomed was
Suppose you have a limited money income and you are purchasing products A and B whose prices happen to be the same. To maximize your utility you should purchase A and B in shuch amounts that?
a software producer has fixed costs of 120000 per month and her total variable costs tvc as a function of output q are
What are excess reserves? Why would banks keep them? How do banks current holdings of excess reserves compare to what they have historically held? Why?
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