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Two companies, Lawnman Inc. and Tauro Co., are competing in the manufacture and sale of a new type of kryptonite-powered lawnmowers. Lawnman has a somewhat older plant and requires a variable cost of $150 per lawnmower; its fixed costs are $200,000 per year. Tauro's plant is more automated and thus has lower unit variable costs of $100; its fixed cost is $400,000.
Since the two companies are close competitors, they both sell their product at $250 per unit.
What is the break-even quantity for each?
At which quantity would the two companies have equal profits?
If sales of each company were to reach 4,500 units per year, which company would be more profitable? Why?
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Elucidate how should Microsoft market long distance telephone services in the new wireless telecommunications devices which also include Internet portals.
Official intervention in the foreign exchange market does appear to be a useful policy when overshoots take place in fragile circumstances.What is an overhsoot? Explain the exact form of this official intervention to counteract a specific overshoot. ..
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Suppose one economist believes the target rate of unemployment is 4.2 percent while another believes it is 5.3 percent. Using Okun’s rule of thumb, by how much would you expect their estimates of potential GDP to differ in an $11 trillion economy?
Suppose Mr Masaki operates a newspaper stand in japan. He sells the Japan Times and English newspaper published in Japan, at the same price as all other newspaper stands do. What is the price elasticity of demand for the Japan Times sold by Mr Masaki..
Opportunity cost is defined:
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Each scenario below gives some information about price elasticity of demand. For each, calculate the missing data, and determine if the price change under consideration will increase, decrease, or not change the firm's total revenue. Honest Abe\'s Us..
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q.sara is a dot.com entrepreneur who has established a web site at which people can design and buy a sweatshirt. sara
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