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Manufacturing vehicles requires purchasing very expensive and sophisticated equipment as well as hiring many engineers. Your friend who works at the corporate headquarters of vehicle manufacturer Kneesawn lets you sit in on a meeting. At that meeting, the chief executives of Kneesawn debate whether or not to introduce a new model to its product line (a sports car tentatively called the Boikmobile). A Kneesawn VP provides two benefits for introducing the new model to its product line: (i) the company already has the robotics/factory/assembly line for manufacturing vehicles, so that introducing a new model will not require duplicating those costs, and (ii) the company already has a basic design for the engine/transmission/radiator/brakes under the hood that it could easily adapt to the Boikmobile.
Which of the two benefits listed by the VP correspond to economies of scale and/or economies of scope? There may be overlap.
A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm: The instant before it pays out curr..
Discuss the reasons why small businesses are so important to the U.S. economy. Understanding that “Diversity is also desirable for innovation, flexibility, and organizational success,” how does it then play a part in small business success? Please ci..
If one has 3 choices to move business into another country and the following information exists, should you do so in if so which country would you choose?
Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 20 apple trees. However the 3 acres differ in their ability to support orange trees. what would be the opportunity cost of growing another apple tree?
An island economy produces only two goods, coconuts and pineapples. 'Adam' has a stronger preference for pineapples but likes coconut too. 'Bella' hates pineapples but loves coconuts. 'Carla' hates pineapple and hates coconuts.
Between January and December 1994, U.S. unemployment fell from 6.7 percent to 5.4 percent of the labor force. The Federal Reserve, the nation's monetary-policymaking authority, took active measures beginning in February 1994 to raise short-term inter..
HC1072-Economics and International Trade Holmes Institute Australia- A discussion about the demand elasticity for the industry’s product.
Peggy-sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster.
The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain with a creative and unique example.
If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then
The world market demand for coal exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for coal in the world.
If the rate of discount is 20 percent Would you rather receive $100 today or $120 in one year? b Would you rather receive $205 today or $240 in one year? c Would you rather receive $500 in one year or $610 in two years?
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