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you are a newspaper publisher. You are in the middle of a one year rental contract for your factory that requires you to pay $600,000 per month, and you have contractual labor obligation of $1.25 million per month that you get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper. If sales fall by 20 percent from 1 million papers per month to 800,000 papers per month, what happens to the AFC per paper, the MC per paper, and the minimum amount that you must charge to break even on those cost?
The estimated economic results for the project (after taxes), in the foreign currency (T-marks), is shown in the following table for the seven-year analysis period being used. The company requires an 18% rate of return in U.S. dollars.
what unemployment rates would we expect to see in this economy?b. Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of short run output (Y tilde) ..
Labor is the only input used by a perfectly competive firm. It hires workers for $50 a day. The firm's production function is shown in the following Table. Each unit output sells for $10. a.) complete the table to show the marginal product oflabor ..
Identify whether the variables in your model suffer from non-stationarity. Discuss the possible implication of non-stationarity for your model and how this problem could be addressed.
Calculate the Net Present Value and Rate of Return for the Project: Initial Cost: $100,000.00 Expected annual benefits: $20,000 Expected economic life: 10 Expected salvage: $10,000 Minimum Attractive Rate of Return: 12%
Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y2 dollars. Cheese is sold..
suppose that Mr Rich withdraws $ 5 Million from his transactions account at the bank of america and holds the money . Assume a reserve requirement of 25 purcent and no excess reserves in the banking system prior to this withdrawal .
The weights of a population of parts made by a certain machine are normally distributed with a mean of ten pounds and a standard deviation of two pounds. What is the probability that a part of drawn at random from the machine weighs between 8 and..
"suppose you could buy a three year bond for $1078.73 that had a face value of $1000 and paid a coupon rate of 10%. What rate of return would you earn if you bought this bond
Transportation costs per 1000 units 800 1,100 950 Which location would minimize the total costs, given an annual production of 50,000 unit for what levels of manufacture and distribution would each ..
Suppose that the residents of Vegopia spend all of their income on Cauliflower, broccoli, and carrots. In 2008, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50.
Potatoes cost Janice $1.10 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14 the third pound is worth $1.05, and all ..
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