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A. Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
Answer:
Number of quality control inspectors
Thermostat Failure rate (%)
Marginal failure reduction (units)
Dollar value of reduction/hired insp
0
1
2
3
4
5
5.0
4.0
3.2
2.6
2.2
2.0
6.4
7.8
8.8
10
B. How many inspectors should the firm hire?
C. How many inspectors should be hired if additional indirect cost (lost goodwill and so on) were to average 30 percent of direct replacement or repair costs?
Carnack contracts to sell his house and lot to Willard for $100,000. The terms of the contract call for Willard to pay 10% of the purchase price as a deposit toward the purchase price, or as a down payment.
The income elasticity of demand for clothing is estimated at +0.5. What would you expect to happen to clothing revenues when incomes are rising When incomes are falling Is the effect stronger or weaker than the movie industry results
Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3 per gallon.
Perform a t test on the slope coefficient and the intercept of the educational attainment function fitted using your EAEF data set, and state your conclusions.
On January 1 2011: C/D = 0.2 T/D = 1.8 ER/D = 0.3 MB = USD. 12000000 Required reserve ratio on checkable deposits = 0.10 Required reserve ratio on time deposits = 0.07 These ratios have been defined in class and are assumed constant.
data from the land of milk and honey: year price of milk quantity of milk price of honey quantity of honey 2010 $1 100 quarts $2 50 quarts 2011 $1 200 quarts $2 100 quarts
Refer to the table above where Coke's payoff is given as the first number in each cell. Suppose Coke and Pepsi are in a strategic environment in which each are deciding whether to manufacture either a big or small can of soft drink (they can't pro..
A certain fluidized-bed combustion vessel has an investigation cost of $ 100,000, a life of 10 years, and negligible market (resale) value. Annual costs of materials, maintenance, and electric power for the vessel are expected to tota
There are currently 10 identical firms in the perfectly competitve gadget manufacturing industry. Each firm operates in the short run with a total fixed cost of F and total variable cost of 2Q^2, where Q is the number of of gadgets produced by eac..
chells demand function is pch 5-qch.gordons demand function is pg 3-qg.draw the aggregate demand curve. what is the
assume that gross private domestic investment is 800 billion and the government state local and federal combined is
Calculate the efficient (i.e. socially optimal) level of production.
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