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Assume Digby expands operations in Asia Pacific in the coming year. In doing so, they have added capacity to fill all demand in-house and have increased automation to reduce labor cost by 10%. For clarity, assume the following are true: Daze material cost is still $12.75. Daze labor cost last year was $9.00. Daze will be priced at $32.50 per unit, in American dollars. Shipping costs from the Americas to Asia Pacific are $2.50 per unit. What will Daze's contribution margin be in Asia Pacific for the coming year?
Explain how an open market sale of Treasury securities by the Fed affects the following:
Our desires and satisfactions are often relative not only to what others have but also to what we ourselves have become accustomed to. A small amount of tasteless food can be the source of immense satisfaction to a very hungry person. The marginal co..
Demand for phones at an on-line retailer is 5,000 per month. The annual inventory carrying rate for the retailer is 25 percent, and the retailer incurs a fixed order cost of $15,000 for each order placed with the supplier in Taiwan. How many phones s..
Find out the optimal price-quantity if the firm is not able to price discriminate.
In the short-run, if a firm has decreasing returns, does it have increasing, constant, or decreasing marginal cost? Explain. What about if it has constant returns? Increasing returns? Explain.
Human capital is the. One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society. Other things the same, a country that increases i..
Suppose in the Cournot model that the firms have different production costs. Let c1 and c2 be the costs of production per unit for firms 1 and 2 respectively, where both c1 and c2 are assumed less than 1/2. Find the Cournot equilibrium.
Define and explain fiscal policy, explain the difference and workings of expansionary versus contractionary fiscal policy, budget deficit versus budget surplus. Describe excessive increases and decreases in aggregate demand; what do they cause, how d..
Explain Cooley’s argument in “Genetically Modified Organisms and Business Duties.” What would Cooley say about the activities of Monsanto and related in the case study “Monsanto’s Round-Up Ready Wheat”? In general, do you agree or disagree with Coo..
What is Anarchy when referring to International Relations? Why is the concept of Anarchy important for understanding the difficulties for international negotiations on environmental issues?
Monopolistic competitition differs from perfect competition primary because in monopolistic competition,
Consider a good whose consumption takes place publicly. On what factors would your decision to buy that good depend.
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