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Problem: Johnson Peters holds the position of operations manager for a small container and bottle manufacturing company. His job description includes managing inventory levels, supervision of operation, leading his team etc. Annually there is usually a quick turn over of inventory items. One of the main items (bottle caps) have a demand of 8,000 units per day. The actual cost of each unit is $150, and the inventory holding cost per years is 10% of the unit price. The average setup cost is $17.85. There are 300 working days per year, and it takes an order about 5 days to arrive by boat.
A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to install.
Show that, for any point on the constant elasticity of demand curve, the corresponding marginal revenue is zero.
In a two country model with two goods and two factors, both countries have identical endowments of capital and labour, as well as the homothetic tastes.
For flood control purposes, the government is considering three undeveloped sites for a water detention area. The estimated costs associated with each alternative are given below. Use the conventional B-C ratio method, with AW as the equivalent-worth..
Consider the various uses for network devices like routers, switches, hubs, repeaters, etc. and how one or more of them would aid situations where network performance is degraded.
Suppose you have found the house of your dreams. The selling price is $189,900. You have a mortgage offer for 30 years at 5.74%, compounded monthly, for a loan that is for 100% of the value. What is the difference in the amount of interest you would ..
Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. Caroline: The usefulness of government intervention in the economy is a long..
Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9%, as long as it finances at its target capital structure, which calls for 35% debt and 65% common equity. Its last dividend ..
What is the importance of measuring GDP on a per capita basis?
A local department store offers 24-month financing for a certain $1,000 appliance at an “interest rate of 9% per year”. What is the effective annual interest rate a customer would actually pay for this financing? What is the nominal annual interest r..
Two identical countries, Country A and Country B, can each be described by a Keynesian-cross model. The MPC is 0.9 in each country. Country A decides to increase spending by $2 billion, while Country B decides to cut taxes by $2 billion. Find the tax..
Suppose a computer manufacturer is currently producing a total of 1 million computers in two states, Iowa and South Dakota. The firm is currently employing 50,000 production workers, with 20,000 working in South Dakota and 30,000 working in Iowa.
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