Build equivalent plant-what should the manufacturer do

Assignment Help Business Economics
Reference no: EM13851351

A manufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. In the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. What should the manufacturer do?

Reference no: EM13851351

Questions Cloud

Integral to survival of capitalism as economic system : In about 500 words, From a geographical standpoint, why is space, as in usable area on earth, so integral to the survival of Capitalism as an economic system?
Discuss the historic and cross-cultural perspectives : Discuss the historic and cross-cultural perspectives of psychopathology that could potential impact the diagnosis and treatment of Tina. After reviewing the several diagnoses that could pertain to Tina from the DSM-5, what is your diagnostic impres..
Number of sets-must be sold in order to maximize revenue : The demand function for a particular brand of LCD TV is given by p=2800-35x where p is the price per unit in dollars when x thousand television sets are sold. Determine the number of sets that must be sold in order to maximize the revenue.
Calculate the percentage rates of increase in real gdp : Calculate the percentage rates of increase in real GDP, consumption of durables, consumption of nondurables, and consumption of services, and plot these. What do you notice in these plots compared to the information in Figure 3.9 and 3.10.
Build equivalent plant-what should the manufacturer do : A manufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. In the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant f..
Think about what you would like to achieve-gain knowledge : Think about what you would like to achieve-gain knowledge, make grades, get degrees, prepare for a job, make friends, participate in athletics, find a partner? What else
Demand elasticity facing one firm at competitive equilibrium : If the market demand curve is Q = 100-p, what is the market price elasticity of demand? If the supply curve of individual firm is q = p and there are 50 identical firms in the market, draw the residual demand facing any one firm. What is the residual..
Main drawback of the herfindahl-hirschman index : The main drawback of the Herfindahl-Hirschman Index (HHI) is that:
The price elasticity of demand : If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd