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The Oneill shoe Manufacturing Company will produce a special style shoe if the order size is large enough to provide a reasonable profit. For each special style order the company incures a fixed cost of $2,000 for the production set up. The VC is $60 per pair and the sell for $80 per pair.
a. let x indicate the number of pairs of shoes produced. Develop a mathmatical model for the total cost of producting x pairs of shoes.
b. Let P indicate total profit. Develop a mathmatical model for the total profit realized from an order for x pairs of shoes.
c. What is the break even point?
you have purchased an equipment costing $20,000. the equipment will be used for two years, and at the end of two years, its salvavage value is expected to be 10,000. the equipment will be used for 6,00o hours during the first year
The daily production function of a lake is TP=30*F-F^2 (where TP=total daily harvest and F=number of fishermen per day). Suppose each potential sport fisherman on the lake has a daily opportunity cost of $20 and that each fish caught is valued at ..
Suppose worker productivity increased at the rate of 1.9% per year. If the labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressures
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. (a) If these economists ignore the possibility of crowding out
Government wants to increase its spending. How big increase in G can government afford if it does not want investment to fall below the level found in part A?
Briefly explain the economic logic behind Grunfeld's model and the expected signs of the coefficients in (1). Run OLS on the pooled data. Explain the possible problem(s) with the regression from part b.
However, when the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides. What were taxicab drivers assuming about the elasticity of demand.
Bakka Bee, a construction firm in Toronto Canada. They are a firm with 200 employees in five countries. One of their divisions - in Peru - has encountered difficulties and may have to be liquidated. The company uses computers for everything from d..
How would you test the hypothesis that the error term in the popula- tion regression is normally distribute? Show the necessary calculations.
Determine the step response and explain the circuit's behavior.
If AD goes up by 40, since the multiplier is 5, GDP will rise by 200. But WHAT in GDP will rise. I see that I will rise by 40 (because MPI=0.2) and C will rise by 120 (because MPC=0.6). But 40 + 120 only reaches 160 and GDP is supposed to rise by ..
assume that now there is a sortage of qualified labor and maximum amount of labor hours company can use per day is 70 (workers in company receive 10EUR per hour).Which model of watches should companu produce to maximize its profit
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