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wITH CURRENT TECHNOLOGY, SUPPOSE A FIRM IS PRODUCING 800 MUFFINS DAILY. ALSO ASSUME THAT THE LEAST-COST COMBINATION OF RESOURCES IN PRODUCING THOSE MUFFFINS IS 4 UNITS OF LABOR, 8 UNITS OF LAND, 2 UNITS IF CAPITAL, AND 1 UNIT OF ENTREPREEURIAL ABILITY, SELLING AT PRICES OF $45,$50,$65,AND $25, REPECTIVELY.iF THE FIRM CAN SELL THES 800 uNITS AT $1 PERUNIT, WILL IT CONTINUE TO PRODUCE MUFFINS?
The agency of Labor Statistics follows 5-steps to calculate Consumer Price Index. Determine three strengths and three weaknesses of the Consumer Price Index calculation.
A new gear grinding machine for composite materials has a first cost of P=$100,000 and can be used for a maximum of 3 years. Its salvage value is estimated by the relation S=P(0.85)n, where n is the number of years after purchase. The operating co..
Suppose households consume 80% of their disposable income. The government is considering three actions to help increase GDP: increasing government spending, cutting taxes, or increasing fixed transfer payments. If the government increases transfer..
Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 60 percent chance the market will be $100 and a 40 percent chance the mar..
A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolis..
A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of plywood is $900,000 per month. The variable cost per thousand board feet is$131.50. The price charged will ..
The following numbers measure the tradeoff between grades and income: Total Hours Hours Hours Studying GPA Working Income 60 60 4.0 0 $ 0 60 40 3.0 20 $100 60 30 2.0 30 $150 60 10 1.0 50 $250 60 0 0.0 60 $300 Total Hours Hours Hours Studying GPA
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of $1200 after the machine's useful life of 8 years. On the other hand, leasing requires an ann..
1) what is equilibrium GDP 2) what is the marginal propensity to save out of disposable income 3) what is the average propensity to consume out of disposable income (at equilibrium GDP) 4) what is the value of the expenditure multiplier
if real GDP in 2002 were $10,048.8 billion and nominal GDP in 2002 were $10,049.6 billion calculate the percentage change from 2001 to 2002 in nominal GDP, real GDP and price level. What is the value of the GDP deflator in 2002
A $50,000 loan with nominal interest rate of 6% compounded monthly is to be repaid over 30 years with the payments of $299.77. The borrower wants to know how many payments he will have to make until he owes only half of the amount he borrowed init..
Speculate how the price for that good or service may have been set and how well this price maximizes profit for the company and determine what shifts the company should made in its pricing strategy. Provide support for your recommendations.
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