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Two division managers at King Size Manufacturing have been in a long discussion with top management about allocation of capital spending over the next three years. The current plan up for approval calls for the bulk of capital expenditures to go to Division H which historically has been the larger division of the firm. The manager defends this decision because, he says, his division has been providing the bulk of the profits for the company. Division J is smaller, and its manager says that it is time to make the divisions more even in size. His bonus is based on total sales and he wants a larger bonus for himself and his management team You have been called in to assist management in seeking a solution to this disagreement. What do you recommend?
Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs. Describe the relation between marginal and average variable costs.
Suggest the substantive manner in which a low-calorie, frozen microwaveable food company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide tw..
A research engineer invests $5,000 at the end of every year for a 32-year career. If this teacher wants to have $1,524,240 in savings at retirement, what interest rate must the investment earn? Consider the following two mutually exclusive alternati..
This case analysis should be written on "the economist" case provided in the additional material. Thank you custom-writing! No additional research is needed but any tables or graphs that are needed should go in the appendix with a max of 3 pages as e..
Explain with a graph and a verbal explanation how a ticket price ceiling placed on a monopoly sports franchise (that does not sell out its games) may actually lower ticket prices and raise attendance. Assume that marginal costs are fixed.
Total federal revenues as a percent of GDP (Gross Domestic Product), since at least World War II, have remained just under. At least one critic of the comparison of revenues as a percent of GDP has stated that the median and average percentage for ta..
Louisa is managing a training program for a major bank. She designs the following experiment to assess the effect of sleep on learning. A group of trainees is given a 3-hour session on some task, followed by a 2-hour test on what they have just learn..
q1. law of diminishing marginal utility some restaurants offer all you can eat meals. explain how is this practice
A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer's optimal consumption bundle will change despite them being able to afford their original ..
The demand for a product is Qd = A - Bp where A and B are positive constants. Suppose when the price is $1, the amount demanded is 60 and the elasticity of demand is -1. What are the values of A and B?
Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
Consider two rms facing the demand curve P = 50- 5Q where Q = Q1 +Q2 . The rms cost functions are C1 (Q1 ) = 20 + 10Q1 and C2 (Q2 ) = 10 + 12Q2. If they collude, how much will each firm produce? What would be each firm's prot?
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