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profit contribution analysis. Kathy's Bakery is a full -service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf. Of this amount, $1.50 is profit contribution. She is considering an attempt to differentiate her shop from several other competitors by only producing a special rice bread for customers allergic to wheat. Doing so would increase her unit cost by 50 cents per rice loaf. Current monthly profits are $400 on 800 units.A. Assuming average variable costs are constant at all output levels, what is Kathy's total cost function before the proposed change?
B. What will the total cost function be if rice loafs are produced?
C. Assume rice loaf remain stable at $3 . What percentage increase in sales would be necessary to maintain current profit levels?
Assume the following data describe the condition of the banking system: Total reserve $200 billion Transactions deposits $800 billion Cash held by pubic $100 billion Reserve Requirement 0.20
women and selected minorities are systematically excluded from high-paying occupations and crowded into low-paying occupations, decreasing their wages and reducing domestic output. B. employers having high discrimination coefficients will be crowde..
Motorola and other backers sank more than $5 billion in the 1990s into the development of Iridium, satellite communications systems to connect wireless telephone users anywhere on earth. Although the number of subscriber's signing up for the servi..
Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend.
What is the total demand curve for the firm What are the marginal revenue curves for the firm What are the monopoly prices and quantities for each group when the firm conducts third degree price discrimination
A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is S = 50 + 5P. The domestic demand curve is D = 400 - 10P. In addition, each unit of production yields a marginal social benefit of 10. a. C..
Ann Isabel, a recent graduate from Tech, would like to be a millionaire when she will retire after 30 years. She would like to start with a deposit of $1,000 at the end of the first year and increase it every year by $400 thereafter. What interest..
a. If the price of capital is $7.50 per unit what is the per unit price of labor b. How many units of labor should the firm use in order to produce 400 units of output at the least cost c. The minimum cost of producing 800 units of output is what
Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 5%. Households deposit $20,000 in currency into the bank. How much excess reserves does the bank now have.
You are the sales manager for an appliance store. You have a total of 100 sales people. 40 sales people sold $1000 or less and the rest sold over $1000. Of the 40 who sold $1000 or less, there is a 0.20 probability that the sales person was new.
Draw the Keynesian Cross diagram of this economy. Carefully label intercept and slope of the aggregate demand curve. What is the multiplier for credit-nanced government spending? That is what is the effect of an increase in G while T remain unchang..
A firm is using 500 units of labor and 100 units of capital to produce 100 units of output. Labor costs $5 per unit and capital $20 per unit. At these input levels, another unit of labor adds 5 units of output, while another unit of capital adds 4..
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