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Best Bikes produces bicycles and buys brakes from a supplier in Japan. The brake set for onebicycle costs $125, and it is $35 to process the order with the supplier. The companyconsistently sells 50 bicycles a week (for 52 weeks of the year) and holds an average of 1 weekof brake sets in inventory to cover the constant lead time from Japan. The company uses aholding/carrying rate of 20%.
1. What is the average inventory carrying/holding cost for the brakes?
2. What is the EOQ for the brakes?
3. What is the ROP for the brakes?
4. What is the total annual inventory cost for the brakes?
5. What buying/purchasing strategy would be most appropriate for the brakes and why?
Explain the effects of these shocks on the price level, real GDP, and the nominal interest rate. Use an upward-sloping, short-run supply curve in your analysis.
However, many critics contended that this "sequester" measure is only temporary and too small given the $4T US government budget to have a significant impact on the economy. Therefore, many economists considered this spending cut as too small to ..
what aspects of your decison-making process fit the description of a rational choice. did you consider costs and benifits?
In the wake of the energy crisis in California, many electricity generating facilities across the nation are reassessing their projections of future demand and capacity for electricity in their respective markets. As a manager at Florida Power & L..
Illustrtae what is the required rate of return on each of the two company's equity.
In the early 1990's, a study found that moderate daily consumption of red wine reduced the incidence of heart disease in labratory rats. As a result of national press coverage of the report, the demand for red wine increased dramatically. Assume t..
Question 1 In the long run, if a firm is making a loss, it will: Question 2 Refer to the accompanying figure. This firm's shortrun supply curve is represented by the:
1. The fact that different sets of goods are consumed in different countries will have no effect on the ability of absolute PPP theory to determine whether a particular currency is over or under valued.
The table given below gives the production and values for a small economy that produces only bread and pop. The base year is 2002.
Some politicians have proposed changing the way social security benefits are taxed. One proposal would increase the amount of Social Security benefits included in gross income to 100 percent
What does Friedman believe about expansionary monetary policy? Do you think Keynesian economists would agree?.
Suppose the banking system is in reserve equilibrium. The Fed conducts an open market purchase of Treasury securities in the amount of $1 billion.
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