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The Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one jig is: If the special order is accepted, Immanuel will not incur any selling expense; however, it will incur shipping costs of $0.30 per unit. Total fixed production cost would not be affected by this order. At what selling price per unit should Immanuel be indifferent between accepting or rejecting the special offer?
Problem: Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from $100 to $150 to $180, where q is quantity and C is total cost. Assume that the price of output ..
Much of the demand for U.S. agricultural output has come from other countries U.S. farmers are concerned about this drop in export demand.
They have the same saving rate, the same depreciation rate, the same population growth rate, and the same rate of technological progress. Both countries are described by the Solow model and are in their steady states. What would you predict for t..
Ade has utility function U(X) = X2 , Bode has utility function U(X) , Clement has utility function U(X) = X4/5, Diran has utility function U(X) = X1/2, Effiong has utility function U(X) = X1/4, where X is the total amount of money taken by the famil..
How is the american auto industry an oligopoly? 2-3 page paper about this .and how the companies differentiate from one another but yet still initially sell the same products: cars.
From the regression output, estimate the demand function when income is $40,000 and price is $2 per gallon. Explain the result in terms of R-square, T-test, F-statistic, and signs of each X variables.
A firm, which is the only supplier of a good located in a particular town, is accused of engaging in anticompetitive tactics in order to protect its monopoly position in that town. As part of its defense, the firm has argued that the geographic an..
Assume that initially the goods and services market is in equilibrium at the potential
An expenditure of $20000 is made to modifya material handling system.this modification will result 1st year saving of $2000,2nd year saving $4000 and a saving of $5000 per year thereafter.How many years the system last if a 18% return on investment i..
If a country imports more than it exports, describe three methods that residents of that country have to pay for the extra imports from foreign producers (i.e. changing ownership of assets or liabilities).
Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? Compute the value of the price index for GDP for 2005 by using 2004 as the base year. By what percent did prices increase?
Why do you think some economists were dissatisfied with the cardinalistic approach to the consumer theory.
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