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Auto-fit is a multidivisional firm that produces auto parts. It has the capacity for annual production of 100 units of a particular part. The marginal cost of producing each unit is $10. These units can be sold internally either to other divisions or to external customers. The external market price is $20. The allocated share of corporate overhead for each part produced is $5. Total corporate overhead expenditures do not vary with the production of the part. How many units of the part should the company produce? What is the theoretically correct transfer price (should the company decide to transfer the part internally)? Explain.
If countries are so keen to reduce the barriers to trade, why do many countries frequently attempt to erect barriers?
Campare RMSEs for moving average and exponential forecasts to answer "Is this a better forecast than the moving average?" Use 166.63, the mean of all 36 months, as the initial forecastfor Jan. 1998 for both exponential smoothing forecasts.
Analyze the economic impact of current approaches to controlling air pollution to determine which approach is the most effective
Given the Keynesian explanation for the persistence of high levels of unemployment after the recessions of the early 1980s and early 1990s, what policies would you advocate to reduce unemployment in the years following a recession?
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Should all developing countries aim over the long term to become exporters of manufactured products?
Describe the "passing the baton" approach to CEO succession. What other methods are used? Is the likelihood of CEO turnover related to firm performance? Give several examples to support your position.
Graph the supply and demand curves - Find the equilibrium price and quantity and Find the new equilibrium price and quantity, and show this on your graph.
A company is practicing 1st degree price discriminaiton. The demand for the company's product is defined as QD = 20-2P. If the firm maximizes profits by selling 4 unites of output
1.Why do marginal cost curves intersect both the average variable cost curve and the average cost curve at their lowest point?
1.Would it be possible for firms to calculate their maximum profit output if they did not use marginal cost and marginal revenue concepts?
Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.
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