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From Lesson 1, we learned about marginal production economics and cost behaviors. As we move into Lesson 5, we will be adding the issues surrounding capital additions to production capacity and returns on investment. Both of these concept areas are vital to management decisions about production rates and adding new capacity. To maximize profits and return on capital, all businesses conduct economic evaluations daily to adjust production to meet demand and price in the marketplace. The interplay of demand and supply is the reason that prices fluctuate over time. To integrate these ideas and the operating management tactics that ensue, we will be using the world oil marketplace as our case study for the next two weeks of discussion.
There can be no better area to illustrate these concepts than the world oil markets. As you know, crude oil prices were once over $100 per barrel. Now, they have declined into the $30's per barrel due to price cutting, increased supply and demand worries. How does "marginal economics" factor into these changes? What are the motivations of the different suppliers as prices change? Do some research on this area and post your ideas, conclusions, and outlook for oil prices.
An economist had estimated sales trend line for the Sun Belt Toy Corporation as follows:
What were the immediate consequences of the encounters between the Old and New Worlds?
How does monetary policy affect aggregate demand in the short run? How does monetary policy affect aggregate demand in the long run? Your response should be at least 75 words in length.
How would you describe/define Sharia? What unique challenges does it create for being a universal religion? What is your viewpoint about Sharia?
1.Imagine that you won millions of pounds on the National Lottery. Would your economic problem be solved?
Specifically, consider how either starting a business or going into the real estate business might fit into this strategy and explain the tax benefits of each strategy.
There is some information you are given, and on the basis of the information, you are asked to make a decision. Now here are some definitions
Minimum number of doctors required so that the average time a patient waits for treatment is no more than 30 minutes as advertised? No more than 15 minutes?
managerial economics and quantitative analysis question 1after two quarters of increasing levels of production the ceo
Describe a real situation in which a sector of supply or demand was or will be hit by a change to costs, to benefits, or to taxes and subsidies - what are the impacts on price, quantity, and the outcomes for producers and consumers, of a shock to ..
The Johnson Company is the sole producer of clothing. What can the company do to induce Juan to purchase more clothing? Show graphically. (The graph does not have to be exact.)
Assume that the demand for a gas station is given as PD = 2.06 - .00025QD. The marginal cost is $1.31 per gallon. At his current $1.69 price,
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