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1- Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.
2- Explain how expanding a company's division with the highest operating leverage would affect the company's risk position.
3- Explain how a break-even calculation (based on different price levels) can affect your analysis, and use the notion of operating leverage to assess the risks and rewards associated with production level option.
Why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run?
Provide the Gilbert's choices of both Bordeaux and yogurt under the following circumstances (Consider each separately):
Estimate the demand function
M is the monopolist selling goods G. M's cost function is c(y)=4y where y is total production of G. Some of M's potential customers are members and get the member magazine with coupons.
Indicate whether each of the following statements is true or false and explain why. a) A competitive firm that is incurring a loss should immediately cease operations.
Short and Long-term costs business comparisons. Select directly comparison business concepts and generally discuss the FC, VC, break-even quantities, economies of scale and diseconomies of scale for each.
Describe the concept of the law of "diminishing returns" and why does it take place only in short run? Differentiate between "the long run return to scale" and "economies of scale."
Burger Doodle is the fast-food restaurant that processes average of 680 food orders each day. Evaluate the average product cost
The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, like obesity and heart disease. Answer the following: in 600-800 words
Show the country's production possibility curve.
On Valentines Day, the prices of flowers and chocolate are usually high compared to other times. How do the principles of demand and supply describe the reasoning behind such price increases?
Ann McCutcheon is hired as a consultant to a firm producing ball bearings. This firm sells in two distinct markets, each of which is completely sealed off from the other. What price should managers charge in each market?
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