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Merk, Inc., produces electronics component on an assembly line. The standard cost for the component is $105 (labor $15, materials $60, and other costs $30). The sellings price is $200. The company wishes to achieve a 5% increase in total factor productivity by reducing the materials cost only (with labor cost and other remaining constant.) By what percentage must materials cost be reduced to achieve this goal?
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Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are I place for making bronze and plastic sprink
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All else constant, as the price of petroleum increases relative to the prices of other inputs to the production process, in their effort to minimize their total costs of production
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