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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?
Using a long-run Phillips curve, what is the effect on the unemployment rate if the inflation rate rises and people expect the rise.
Illustrate what policy options are available to the government to counter the effect of a sharp fall in real estate values on the economy.
Upon what specific assumptions is this production possibilities curve based?
"The most disruptive supply shocks in recenthistory were caused by OPEC, the Organization of PetroleumExporting Countries. In the early 1970s, OPEC's coordinatedreduction in the supply of oil nearly doubled the world price.
Insert the graph into a Word document. To paste the graphed image on a Word document, press and hold "ALT," then press "PrtScrn" while viewing the graphed image. Select a point on the Word document to paste the graph. Press and hold "Ctrl," then p..
What is one significant consequence of fractional reserve banking Banks are vulnerable to "panics" or "bank runs." Banks can only lend an amount equal to its deposits. Banks hold a portion of their deposits in gold. Banks can serve the withdrawals..
Discuss the changing economic variables in China that influenced McDonald's expansion strategies.
A group of firms in competitive market produced 20 units of a good when the market price was $2. They incurred no marginal cost. Eventually they realized the benefits they could get by teaming up and acting as a monopolist.
If there are only two goods, it is possible to illustrate a consumer's preferences over them with an indifference map. Draw an indifference map with three indifference curves.
Determine absolute advantage and comparative advantage and explain why will resources specialize according to their comparative advantages?
That means that businesses, consumers and whole societies face tradeoffs whenever they make a decision.
Assume the following average inventory in sanding, the buffer, and painting: Sanding: 1batch; Buffer: 2 batches; Painting: 1 batch. What is the average flow time from the start ofsanding until the decks are ready to enter the ..
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