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A plant making 2000 tons/year of a product selling for 50.80 per lb has variable cost of $2 million at 100 per cent capacity, and annual fixed costs are $700,000. What is the fixed cost and product cost per pound at the break-even point? What is the product cost per pound at 100% plant capacity?
How does the difference between private and social values explain market failure even with perfect competition and market equilibrium, in the case of public goods and externalities? Allow public goods to be just like private goods in terms of exclusi..
If you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered theirs also? Di..
Suppose that excess reserves in the Stranda National Bank are $15,000 and the reserve requirement is 4 percent. Illustrate about the maximum amount that the money supply can be increased is.
A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.
In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must:
Consider the EOQ model with fixed lead time L > 0. Show that the average amount of inventory on order is equal to the lead-time demand.
In Metropolis, there are three types of houses: expensive, medium, and cheap. All households – regardless of what type of house they have – have the same marginal benefit curve for open space, which is a public good. Households can sort into differen..
Explain the advantages of specialization and trade in international economics. Explain how economic growth and international trade increase consumption possibilities.
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
In general are becoming less integrated due to the widespread availability of interest rate and currency swaps
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
Using a wholesale price of $4 per case in each state, calculate the breakeven output quantities for each alternative.
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