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An oil company is considering adding an additional grade of fuel at its service stations. To do this, an additional 3000-gallon tank must be buried at each station. Discussions with tank fabricators indicate that the least expensive tank would be cylindrical with minimum surface area. What size tank should be ordered? (Answer: 8-ft diameter by 8-ft length)
BioElectroMechanical Systems (BEMS) is a startup company with high potential and little available cash. They obtain $500,000 for necessary technology from a venture capitalist, who charges them 24% compounding monthly. How much are the monthly paymen..
How will they affect the balance between securing the systems, and allowing the business enough breathing room to function effectively?
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost (without profit). The remaining 60% of t..
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
The time required to verify and fill a common prescription at a neighborhood pharmacy is normally distributed with a mean of 10 minutes and a standard deviation of 3 minutes. What is the probability that a customer will have to wait more than 15 minu..
What equal monthly investment is required over a period of 40 years to achieve a balance of $2,200,000 in an investment account that pays monthly interest of 0.25%? If montly interest is 2.5%
A firm’s total cost and marginal cost functions are TC = 10 Q2 + 2 Q – 2 ; MC = 20 Q + 2. Asuming that the market price is 42 and that the marginal revenue (MR) is also 42 (it is constant at all output levels), how much output will this firm sell (pr..
What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve c) What would joy's advertising expenditure have to be to counteract this effect?
Assume you have a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. If all three bonds are now priced..
Social Security payments and tax revenues may be considered “on-budget”—i.e., as part of the U.S. general budget no different than defense spending supported by income and other taxes including Social Security taxes—or “off- budget” spending supporte..
Suppose that inflation was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?
Average visits per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage ..
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