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Mandy is a master wood-carver and Jerry is her apprentice. They will each work the same number of hours making toy cars. Each car requires 4 wheels and 1 body. Mandy makes wheels at the rate of 25 per hour and bodies at the rate of 10 per hour. Jerry makes wheels at the rate of 10 per hour and bodies at the rate of 10 per hour. If they wish to maximize output, how many wheels should Jerry make perhour.
A toy manufacturing company has a capacity of 500,000 units annually. The fixed cost of the production line is $400,000 per year with a variable cost of $6 per unit and revenues of $9 per unit. The percentage of capacity that must be utilized for ..
The New York Times reports that Wal-Mart has decided to challenge Netflix and enter the online DVD by mail market. Because of economies of scale, Wal-Mart has a slight cost advantage relative to Netflix. Wal-Mart is considering the use of a limite..
problem 1 write each production function given below in terms of output per person y a yl and capital per person k k l.
Health economists use demand and supply theory to discuss the "Health Insurance Exchange" created by the Affordable Care Act (Obamacare). Mandated by law everyone now must have health insurance.
measuring the economys performanceprepare a analysis by answering the questions below. be sure to cite your references
The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..
Elastic with respect to its own cost and whether Good Y is a substitute or a complement with respect to Good X.
leaders of a small town are tired of looking at a vacant and dilapidated warehouse that sits on a prime piece of real
How does the market adjust in the long run when firms are earning short-run economic profits? How does this affect the short-run supply curve?
If the government of Amityville used a subsidy of $S per unit to encourage the optimal amount of chocolate production, illustrate what level should that subsidy be.
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
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