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John Bros, owner of a spark plug manufacturing facility, is looking to expand his production capacity. He is considering three locations A, B, and C for the constructing of a new plant. The company wishes to find the most economical location for an expected volume of 2500 units per year. Bros calculates that the fixed costs per year at each of the sites amount to $25,000; $50,000; and $100,000 respectively. The variable cost is $70 per unit, $40 per unit and $20 per unit respectively. The expecting selling price for each spark plug is $120. Find the preference volume for each location.
A company produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers a and b, with demand functions
Suppose an economy characterized by the following equations; Assume W=10,000. Draw the aggerate expenditure function on a scale diagram along the 45 degree line.
Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Explain how would you explain reservations in the United States about the implementation of NAFTA. Do you think that NAFTA is a "good thing".
Some people advocate government funding of college scholarships as a way of creating a more egalitarian society. Others argue that scolarships help only those who are able to go to college. Do your answers to the preceding questions shed light on ..
The short run is decision making period during which at least one input is considered fixed. The fixed input is generally considered to be some aspect of capital,
Explain these concepts address Google's opportunities and problems. What are some political and economic policies affecting Google and how do they influence decision-making.
Elucidate economic school of thought does Obama base his economic prescriptions? Detractors accuse him of some leaning towards socialism. However, Obamanomics is simply "Keynesian Economics".
I have a website where I offer cash rebates for purchasing stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate.
What is the mechanism by which the central bank announcing an inflation target translates into an actual inflation rate and how would your answer to q1 change if households had rational expectations
Briefly describe the details of the fictitious business and evaluate the financial performance of the company using the information provided in the scenario
Beauty lotion is a skin-moisturizing product that contantains rich oils, blended especialy for overly dry or neglected skin. Product is sold in five once bottles by a wide range of retail outlets.
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