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A machine shop manufactures custom brake disks for high performance cars. The shop needs to meet a demand of 2000 units per year. For each production run there is a setup cost of 1800 dollars, and there is a cost of 50 dollars per unit for materials and supplies. Storage of unsold units costs the shop 16 dollars per year. How many units should the shop produce on each production run in order to minimize inventory costs (setup plus storage)? Round your answer to the nearest integer.
Harper Engine Company needs $600,000 to take a cash discount of 1.5/10, net 60. Abanker will loan the money for 50 daya at an interest cost of $12,100. What is the effective rate on the bank loan? How much would it cost (in perecentage terms) if Harp..
A12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $ 1000 in 5 years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year?
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
If congress decides to reduce the tax paid per pack paid by sellers of cigarettes other things being equal the cost of cigarettes will fall.
Assume initially that the economy is in a state of long-run equilibrium. The real GDP equals potential GDP and only natural unemployment exists. Now suppose that consumer confidence plummets and the aggregate demand decreases. What will happen to the..
Assume that the product depicted below generates external costs in consumption of $3 per unit. What is the market price (market value) of the product? What is the socially optimal output?
How might managers interpret the potential for their product in a market that is, in absolute economic terms, large but, on a per capita basis, characterized by a majority of poor consumers? In the event that the BRICs fail to meet projected performa..
Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 1 percent. Describe how this unexpectedly low inflation rate would help or hurt the following: homeowner with a fixed- rate mortgage. a union worker in the second ye..
You pay a marginal rate of 3% on the first $10,000 of income and a marginal rate of 5% on the second $10,000 of income. You make $18,000 a year, how much is your income tax?
Sarah is awake for 100 hours per week. Using one diagram, show Sarah's budget constraints if she earns $6 per hour, $8 per hour, and $10 per hour. Now draw indifference curves such that Sarah's labor supply curve is upward sloping when the wage is be..
Stores need not accept your check but must accept currency because
Owing to the rising cost of copper, in 1982 the U.S. Mint changed the composition of pennies from 95% copper (and 5% zinc) to 2.5% copper (and 97.5% zinc) to save money. If it cost the U.S. Mint $0,017 to produce a penny in 2012, is it time to elimin..
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