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Cougar Telemarketing is considering establishing a call center. The initial cost will be $2,750,000 with a $27,500 market value any time within a 13-year period. The fixed cost of the center will be $816,446 per year with an average variable cost of $3.00 per call. Cougar expects to generate revenue of $5.25 per call with a capacity of 110,000 calls for the first year. The company also expects to increase the capacity uniformly each year. At an interest rate of 2 percent per year, decide the uniform amount the capacity should increase each year so that the company can recover its investment in three years.
A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic?
Why did president Obama want to repeal the Bush era tax cuts on upper income taxpayers How would the repeal of these tax cuts impact aggregate demand and to what degree? How did the economic conditions in 2010 make such a repeal less likely to tak..
Starting in late 1970s and continuing through the 2000s, business environment moved toward relying less on government regulation and more on marketplace to get desired economic targets.
Perfect Competition is a model of which examples are few and far between. Yet economists love to discuss this model. Explain why.
Suppose the government imposes a price floor of $25, and agrees to purchases any and all units consumers do not buy at the floor price of $25 per unit (3 points) a. Determine the cost to the government of buying firms' unsold units. b. Compute the ..
Monopolies and cartels are usually associated with economic inefficiencies and dead weight losses.
Describe how an open market sale of T-Bills, carried out by the central bank, affects interest rates, the banking system and real economic activity
john and dave value national defense differently. johns demand for the public good is p 50 - .20q. daves demand for
bloomington brewery produces beer and ale. beer sells for 5 per barrel and ale sells for 2 per barrel. producing a
Discuss how organizational architecture and corporate culture are related. Use an example of a real-life firm and discuss how its corporate culture blends with its organizational architecture.
1) If it costs more energy to recycle than to dispose, shouldpeople be incourage to recycle 2) Oregon Forrest Restoration Act requires a logging companythat cuts a tree, must plant 3 to replace it. Why do you think mosteconomist saythis law is not..
If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group's planned investment functions Are stocks of produ..
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