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?Assume you are an analyst with an online university say UOP. The Admissions Director (AD) wants to determine the optimum number of students for each ECO561 class. You are provided with the following data: Tuition is $1250 per student. Instructor Pay $2500 Other incidental (variable) costs - $1000.00 Variable cost increases by 10% per each additional student How many students will you recommend to the AD? What would be the profit for the given number of students? Is this a profit maximizing number of students? Now assume that variable cost increases by 15% for each additional student, what is the new profit maximizing number of students? What is the relevance of the marginal rule (MR = MC) in your decision making?
Does anyone know of any work on banking system behaviour, and in particular the governing regulatory frameworks that applied between the 1973 collapse of the gold standard based Bretton Woods system and the introduction of the Basel Accords and capit..
State the rule for optimum input allocation to produce a given level of output at the lowest possible cost - when two inputs are varieable and the prices of the inputs are given- and explain why it makes sense.
What is your definition of success in your work life? What can you do to ensure that you achieve success? What should you avoid doing?
Potato farming (like farming of most agricultural products) is highly competitive. Price is determined by demand and supply. Based on U.S. Find the competitive market price and output. Potato farmers in Montana raise about 7 percent of total output. ..
Eddie's Precision machine shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. what is the present w..
For both options, your interest rate is 6% compunded monthly. If the car has a value of S after the 36 months period, what is the value of S that would make both options A and B economically equivalent?
Suppose that, over the short run (say, the next five years), demand for OPEC oil is given by Q = 57.5 - .5P or, equivalently, P = 115 - 2Q. (Here Q is measured in millions of barrels per day.) OPEC’s marginal cost per barrel is $15. What is OPEC’s op..
Illustrate what is Ricardian equivalence. Mention and explain three reasons why Ricardian equivalence might not correctly describe an economy.
Measles has become an epidemic here in Orange County. About 1 in 1000 people will die after contracting the disease. Because this is such a high rate, health officials in Orange County would be well advised to pay for anyone to get a vaccination.
According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..
You are trying to decide between buying a Toyota Camry and Honda accord. The initial cost of Camry and accord are $23,000 and $25,000, respectively but the annual maintenance of Camry is estimated to be $200 more compared to accord. What is the incre..
We talked about customer relations being about the little things. Now we are looking at trends. Can you reconcile the little things with the trends in customer relations? To help get started, identify and discuss several 'little things' and trends in..
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