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Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are 1,000 sunbathers evenly spread along the beach and that each sunbather will buy one crepe per day provided that the price plus any disutility cost does not exceed $5. Each sunbather incurs a disutility cost of getting up from resting to get a crepe and returning to their beach spot of 25 cents for every 1/4 mile the sunbather has to walk to get to the CC stall. Each crepe costs $0.50 to make and CC incurs a $40 overhead cost per day to operate a stall. 1. How many franchises should CC award given that it determines the prices the stall holders can charge and that it will have a profit sharing royalty scheme with the stall holders? 2. What will be the price of a crepe at each stall? 3. Suppose now that CC requires that each stall holder deliver the crepes in its own designated territory. How many franchises should now be awarded if the effort costs are the same for the stall holders as for the sunbathers. 4. How would this answer change if the stall holders instead incurred effort costs half as much as those of the sunbathers, i.e., of their costs were 12.5 cents for every quarter mile of distance.
What individual’s decision is altered as a result of not taxing the imputed rent earned by those who live in their own house? How so? Explain.
Explain what will happen in the countries to which the immigrants return to potential GDP, employment, and the real wage rate.
A market consists of two population segments, A and B. An individual in segment A has demand for your product q = 50 – p. An individual in segment B has demand for your product q = 120 – 2p. Segment A has 1000 people in it. Segment B has 1200 people ..
Manuel%u2019s uses a 4-year planning horizon and a 10 percent per year MARR. Based on an internal rate of return analysis, which ERP system should Manuel purchase?
Use supply and demand curves to help you determine the impact that each of the following events has on the market for beef. New genetic engineering technology enables ranchers to raise healthier, heavier cattle, significantly reducing costs.
What is the ratio of Indian GDP to U.S. GDP if we don't take into account the differences in relative prices and simply use the exchange rate to make the conversion? What is the ratio of real GDP in India to real GDP in the US in common prices?
Suppose that an industry has high fixed costs to enter but, other than that, is competitive. What will be the effect of the high fixed costs to the number of firms in the industry? To the firm size ? Is marginal cost higher or lower for a firm with h..
Prove that every weighted average of three numbers x1
q1. select two products or services with which you are familiar - one produced in the u.s. and the other produced in
An industry consists of three firms with sales of $175,000, $555,000, and $205,000. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Round to the nearest integer. Calculate the four-firm concentration ratio (C4).
If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent?
Demand and supply analysis, what is the impact on price and quantity in the market for live chickens and explain what the calculated elasticity value means.
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