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Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.20. Evergreen sells the fertilizer for $0.45 per pound. Determine the monthly break-even volume for the company. If Evergreen Fertilizer Company in problem 2 changes the price of its fertilizer from $0.45 per pound to $0.55 per pound, what effect will the change have on the break-even volume? If Evergreen Fertilizer Company increases its advertising expenditure by $10,000 per year, what effect will the increase have on the break-even volume computed in problem 2?
You expect to receive a payment of $200 one year from now. Your discount rate is 5%. What is the present value of the payment to be received? Suppose that your discount rate rises to 6%. What is the present value of the payment to be received?
Suppose that the demand curve for wheat is Q = 100 - 10p and that the supply curve is Q = 10p. What are the effects of a specific tax of t = 1 per unit on the (1)equilibrium, (2)government tax revenue, (3)CS, (4)PS, (5)welfare, and (6)DWL?
q. in late 2001 and once again in the current economic situation economic policy was aimed at lowering short term
q. real wages and productivity-are workers paychecks keeping up? over the long run historically real wages produce
Since its introduction during World War II as a measure of wartime production capacity, the Gross National Product (GNP), now routinely measured as Gross Domestic Product (GDP), has become the nation's foremost indicator of economic progress. It is n..
Using the diagram below explain the output, employment, wage, and income distributional consequences of an increase in migration of labour = L1US - L2US from Mexico to the USA.
Elucidate how might firms "avoid" experiencing diseconomies of scale also illustrate what does the long-run average cost curve look like when diseconomies of scale exist?
Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported ball bearings: A senator from a state with several ball-bearing factories explains that it is necessary to impose trade restrictions, such as a tari..
q1. write the economic analysis section of a business proposal. this will include statements about the market structure
In the text, we considered a sequential move game in which an entrant was considering entering an industry in competition with an incumbent firm ( Figure 15- 1). Consider now that the entrant, if fought, has the possibility of withdrawing from the in..
According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.
Consider a Stackelberg game of quantity competition between two firms. Firm 1 is the leader and firm 2 is the follower. Market demand is described by the inverse demand function p = 100 ? 2Q. Each firm has a constant unit cost of production equal to ..
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