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Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition. Due to a slow economy, business has been slow and the company is losing money every month. The owners have asked you whether to continue operations or to shut down at least until the economy improves. You have the following information available:Marginal Revenue (MR) = $130Total Cost (TC) = $1,100 + 135Q + 0.6Q2Marginal Cost (MC) = 135 + 1.2Q
As the plant manager, should you recommend to the owners that the plant be shut down for a while? Justify your answer using at least two analytical techniques and presenting the information graphically.
What recommendations would you offer to top management at Kodak to preempt or minimize problems with the new reward system?
1.Why might it be better to ban certain activities that cause environmental damage rather than to tax them?
Assume that Saudi Arabia lets other members of OPEC sell all the oil they wish at the existing price which udis set and other members accept.
For what reasons may the NAIRU increase?
Consider the argument that in the modern world of large-scale, short-term international capital movements, the ability of individual countries to affect their exchange rate is very limited.
Propose two (2) applications of the knowledge that you have learned in this course to your current or a future position. Provide a rationale for your response.
Find weakly dominated strategies for both Bob and Charles. Is bidding 0 a weakly dominated strategy for either player? Explain.
Describe how advertising could increase, and how it could decrease, competition in a monopolistically competitive industry and Why is there probably some rivalry in many monopolistically competitive markets?
The peace barber shop employs 4-barbers. One barber, who also serves as the manager, is paid a salary of $1,800 every month. The other barbers are paid 1,300 every month.
If the federal government enacts a tax on a monopoly, how would you expect the additional tax to affect the following?
Assume a risk-free asset has a 5% return and a second asset has an expected return of 13% with a standard deviation of 23 percent.
Discuss what factors the firm should consider in deciding whether this idea should be implemented. How should the initial piece rate be set?
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