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A brewery is considering two potential production investments:
Option A costs an initial $2 million and will involve constant marginal cost of $5option B costs an initial $4 million and will involve constant marginal cost of $3 In order to make the calculations simple, assume the annual capiital cost is 10% of the total investment. At what production wuantity per year would the brewery be indifferent between these two investment opportunities? A. 20000B.100000C. 200000D. 150000
Suppose that the risk-free interest rate is 10% per annum with continuous compounding and that the dividend yield on a stock index is 4% per annum. The index is standing at 400, and the futures price for a contract deliverable in four months is 405. ..
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What does this graph tell us the nature of economies of scale in the beer brewing industry b. What are the particular problems associated with the firm represented by the SATC curve shown in the graph Does it represent a firm that would be able to..
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