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An agribusiness firm is trying assess its chances for success in a new market. Market research has estimated they will sell 10,000 bags of the product when the price is $50 per bag. The average variable cost is $30 per bag. The plant needed to service this market will require an investment of $150,000. Using the information given above, determine the minimum annual dollar sales needed to make a 10 percent profit in this market. Using the information given above, determine the minimum annual dollar sales needed to make a 10 percent profit in this market.
An economy produces 2 goods soda a beer. Fully explain why the marginal cost function in the beer industry derives from the marginal benefits of the soda that is given up when beer is produced.
1.Suppose the consumer had preferences described by U(C,l)=C^(2/3)*l^(1/3). They have 4 hours in a day, the real wage is 3, and the dividend income is 6. Part a: Write the Lagrangian for this problem.
Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $80 million. What is the value of the firm?
How else may lead time be reduced? Will transportation cost change with reduction in lead time? Discuss with examples?
A substitute good is a determinant of supply. Government actions, such as price floors and ceilings, can actually reduce employment and raise market inefficiency. Equilibrium is a state of balance between supply and demand. For economies that rely on..
Assuming 8% interest, a 20-year analysis period, and no salvage value, which is the most economical installation?
Consider a firm with the following total variable costs (TVC). If the firm has already purchased the equipment, answer the following: (i) if the firm chooses to operate, what is its best possible output?
(a) (5) What is the marginal utility of G? What is the marginal utility of S? (b) (5) What is the slope of the indifference curves at S = 1 ?
Describe how changes in technology contributed to the globalization of markets - Explain how the Internet affects international business activity and the globalization of the world economy.
Consider a hospital that has a demand curve given by P=180-4Q. Their total cost curve is given by TC=95+2Q. a) Please write down the expression for MR (marginal revenue) and MC (marginal cost). What will be the optimal P and Q? What will be their tot..
Do unexpected monopolistic profits serve any useful function in a market economy? Could additional oil revenue be used to explore and develop new fields?
As soon as she graduated with an engineering degree and started working, Jamie bought a car for $40,000. A down payment of $10,000 was paid by her dad as graduation gift. The rest of the amount was financed with Generous Motors at 3% nominal interest..
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