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Gamma Corporation, one of the firms that retain you as a financial analyst, is considering buying out Beta Corporation, a small manufacturing firm that is now hardly operating at a profit. You recommend the buyout because you believe that new management could substantially reduce production costs, and thereby increase profit to a quite attractive level. You collect the following product information in order to convince the CEO at Gamma Corporation that Beta is indeed operating inefficiently: MPL = 25 PL =$20 MPK = 15 PK =$15 Describe how these data provide evidence of inefficiency. How could the new manager of Beta Corporation improve efficiency?
Cool-Aire Corporation manufactures a line of room air conditioners. Its break-even sales level is 33,000 units. Sales are approximately normally distributed. Expected sales next year are 40,000 units with a standard deviation of 4,000 units.
michael has the following utility functionuxy logx logy where the price of x is 3 and the price of y is 1. he has
1. given the total cost function tc 100010q where q units of output.a determine the equations for tfc total xed cost
a perform time series decomposition on your project y variable excluding the hold out period. show me the smoothed
questionconsider a firm which produces a good y using two inputs or factors of production x1 and x2.thefirms production
Most macroeconomists believe it is a good thing that taxes act as automatic stabilizers and lower the size of the multiplier. However, a smaller multiplier means that the change in government purchases of goods and services, government transfers
Graph an increase in demand when supply is elastic and show the change in eq. P and Q. Graph a similar increase in demand when supply is inelastic and show the change in eq. P and Q. Compare the results. Graph a market with a tax where firms pay th..
gurgling springs inc. is a bottler of natural spring water distributed throughout new england states.five-gallon
A consumer has preferences represented by the utility function
If the market for alcoholic beverages is in equilibrium, then the drinking age is reduced from 21 to 18 what will happen to the equilibrium price and quantity of alcoholic beverages.
if the price elasticity of demand for bananas is -1.5 and the price elasticity of demand for grapefruit is -2.5 and the
Distinguish between a change in Supply and a change in the quantity supplied. Refer to both increases and decreases for each. Distinguish between a change in Demand and a change in the quantity demanded. Refer to both increases and decreases for.
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