Bianca, a small oil producer is talking to her chief engineer, Pete, about repairs and upgrades to an oil well. Pete: “...additional upgrades on the well would cost $5,000 but would allow increased production and revenue of more than $10,000 per year.” Bianca: “I already spent $20,000 on this well, it is a money pit; we should not spend anymore on it.” Based on the information given, what is the sunk cost?
Q: In a completely randomized experimental design, 11 experimental units were used for each of the 3…
A: ANOVA : Analysis of Variance is a statistical formula used to compare variances across the means (or…
Q: 2. The following is the input-output table of a city's industries. Notice that the total revenue and…
A: It can be defined as the form of a table that helps in the representation of the data which shows…
Q: 1) Assume that the marginal abatement cost is given by MC=10x where X is abatement measured in…
A: Pigouvian tax is defined as the tax imposed on producers/frms/businesses that generate negative…
Q: consider the market for sheets of steel, price is dollar per sheet and the quantity refers to sheets…
A: Demand function : Qd = 300,-undefined-0">Demand function : Qd = 300 - Pd Supply function : Qs =…
Q: (Scheduling Competition by Broadcasting Stations) Consider the broadcasting news scheduling model…
A: Game theory influences many elements of contemporary society, from pricing methods and efficacy to…
Q: (a) Along with your textbook reading, review the videos, blog, and articles on market competition.…
A: It can be defined as a practice in which various firms within an industry or within a sector…
Q: Draw points to show the price when the quantity is 4 scoops and the rainfall is 1) 0 inches. Label…
A: Demand is defined as the desire and ability to pay for an individual at various prices at a given…
Q: Global Corp. sells its output at the market price of $13 per unit. Each plant has the costs shown…
A: The term “breakeven” refers to the point at which total revenue equals total cost. It is the point…
Q: Find the SPNE for the centipede game. Centipede game: Two players, 1 and 2, take turns choosing one…
A: Many aspects of modern civilization are influenced by game theory, ranging from pricing strategies…
Q: The following deposits and withdraws were made by Company A at the beginning of each year. The…
A: Any deposit made with a bank or financial institution earns interest. Interest earned is either…
Q: Refer to the diagram. Assume that nominal wages initially are set based on the price level P2 and…
A: Aggregate supply refers to the total quantity of goods and services that producers in an economy are…
Q: Julie, who has $64, consumes only two goods: whistles (w), which cost $6 each and xylophones (x),…
A: Utility is the satisfaction which is derived from the consumption of goods and services. The utility…
Q: 7. For this table, assume that all banks observe the same desired reserve ratio. Also assume that…
A: As the desired reserve ratio is same for all banks. Therefore, the reserve ratio faced by first bank…
Q: Calculate the price elasticity of demand for small drinks. (Show your work) Is the price elasticity…
A: Answering first three parts as per guidelines.Price Elasticity of Demand measures the percentage…
Q: The following is a linear trend fitted to a series expressed in logs. log(7₁) 3.2947 +0.0195 where t…
A: Given,the following is a linear trend fitted to a series expressed in logs.
Q: The following graph represents the demand and supply for blinkies (an imaginary product). The black…
A: It can be defined as a major source of income for the government of any country by which the…
Q: 6. Which competitive force has Naomi capitalized on to benefit her company's manufacturing…
A: a. Buyer power: This refers to the influence that customers or buyers have over a company's products…
Q: Capital Goods 10 (in millions) OE OF B 20 15 Cannot be determined OA 12 15 The point or points that…
A: In the graph, the production possibility curve (PPC) is given. PPC shows the trade off faced by an…
Q: a. Perfectly competitive firms are profit maximiser. Use graph(s) and marginal analysis to explain…
A: In a perfectly competitive market, firms are price takers, meaning they cannot influence the market…
Q: Assume that you have been hired by an International Organization to be consulted on various issues…
A: It can be defined as the process by which an economy can achieve stability in the country in the…
Q: According to the Keynesian model, if the Fed wanted to reduce inflationary pressures, which of the…
A: The Keynesian model, named after the economist John Maynard Keynes, is an economic theory that…
Q: (a) A typical person's indifference curves between garbage and the composite good. (b) Indifference…
A: Indifference curve is the summation of two goods or commodities that provide equal utility to an…
Q: Explain how people respond to incentives and how markets turn self-interested behavior to the…
A: Harnessing Greed: Can self-interest drive positive outcomes? Incentives aligning with social goals…
Q: What impact would a price increase have on the demand for ibuprofen and on consumer surplus given…
A: In this case, we have to discuss the term elasticity of demand. That means there is a change in the…
Q: ASTRS The graph shows the Lorenz curve for income in the graph, the second poorest 20 percent of…
A: In this case, we have to discuss the Lorenz curve for income. The Lorenz curve actually determines…
Q: a. Provide a fully labelled Indifference Curve diagram that applies Becker's model of Time and Money…
A: In the realm of consumer choice and economic decision-making, individuals often make trade-offs…
Q: The production function is Q = f (L, K0). Explain the total product, the average product and the…
A: Production function refers to a mathematical function that represent the relationship between the…
Q: Derive the marginal revenue (MR) equation if total revenue (TR) = f(Q) = . 608 1-40 OA. -16808…
A: Total Revenue is the term used to describe the whole amount of money made from the sale of a…
Q: Food and fuel prices surged in 2022 following the invasion of Ukraine...prices of laundry soap…
A: In a market such as milk or coffee, there are mainly two participants : buyers and sellers. The…
Q: (A) Find the first-order partial derivatives of Q (B) Calculate the value of A so that L ∂Q/∂L + K…
A: Production function exhibits the input-output relationship among goods produced by a firm. In the…
Q: Which of the following factors reduce a cartel's ability to cooperate? • All of the other factors…
A: A cartel refers to a formal or informal organization of independent businesses or companies that…
Q: Consider the market for computers. The current price of dell computer is $1200.00. Two consumers,…
A: Total surplus refers to the sum of consumer and producer surplus. Consumer surplus refers to the…
Q: The following week, Amaia's informatics faculty advisor gives her some advice. In all their years of…
A: Marginal gain is defined as the additional gain by spending more additional hours on work. It refers…
Q: Suppose that the perfectly competitive firm with the costs and revenues shown in the figure to the…
A: A perfectly competitive seller is known as a price taker because the presence of a large number of…
Q: (2) Short Multiplier Questions a) Assume a city knows that its long-term income multiplier equals…
A: The income multiplier depicts the change in the GDP of the country due to an increase in investment.…
Q: 11. Consider the IS-MP model. Following an increase in the marginal product of capital, the IS curve…
A: The IS-MP model combines the IS curve, depicting output and interest rates in the goods market, with…
Q: The ACF and PACF shown above were calculated using data you have been asked to forecast. Answer the…
A: An economic time series' link between its past and present values is measured by the autocorrelation…
Q: Question 39 Use the values in the table below to answer the following questions. Q TC ATC MC 3 20.48…
A: Total cost refers to the sum of all expenses incurred by a company in producing goods or providing…
Q: 4. Consider the following simultaneous stage game that is play twice. That is, there are two…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: Consider a consumer that consumes 2 teaspoons of sugar with each cup of coffee. For each cup of…
A: It can be defined as the quantitative measure of an individual level of satisfaction and preference…
Q: American industrialization caused migration Question 3Select one: a. from country to…
A: American industrialization particularly started during late 19th or early 20 centuries. The…
Q: Tiger sharks are a common resource because the private market _____ prevent consumption by people…
A: A common resource, also known as a common-pool resource, refers to a type of resource that is…
Q: 8. Each firm belonging to a competitive industry has the following long-run cost function 9² q³ 2 16…
A: "As per our policy, we can provide you with the solution to the first three sub-parts. Kindly raise…
Q: Several growers are happy with this advancement in technology because now they can sell more crops,…
A: Elasticity of demand measures the responsiveness of the quantity demanded of a good or service to…
Q: The values of nominal prices of a good at the end of each year between 2016 and 2019 (with 2016…
A: Given,Year2016201720182019Price150158170179Inflation5%x%y%z%
Q: Musashi owns and operates a hot dog stand in downtown Chicago. In order to operate his hot dog…
A: Fixed and variable costs stand as fundamental principles in the realm of business accounting. These…
Q: Role of Economics in Shaping Public Policy - Analyze how economics plays a vital role in shaping…
A: Since the second part of the question is subjective, according to the guidelines, only the first…
Q: 19. Consumer Surplus, Producer Surplus, and Deadweight Loss with Quantity Restrictions M The…
A: Consumer surplus is difference between price consumer is willing to pay and price he is actually…
Q: You've collected the following information from your favorite financial website. 52-Week Price Lo…
A: The return that is necessary to achieve the objectives that the investor has determined to be most…
Q: let e (po) be the price elasticity of demand for a good x of consumer i (i= 2,...,n) at price po,…
A: The elasticity of demand is considered as the overall change in commodity prices, resulting in a…
Bianca, a small oil producer is talking to her chief engineer, Pete, about repairs and upgrades to an oil well. Pete: “...additional upgrades on the well would cost $5,000 but would allow increased production and revenue of more than $10,000 per year.” Bianca: “I already spent $20,000 on this well, it is a money pit; we should not spend anymore on it.” Based on the information given, what is the sunk cost? Group of answer choices
Only type writing allow....don't use pepar work then I will give u down thamb ?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Tim lives in Vancouver and runs a business that sells pianos. In an average year, he receives $733,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $433,000; he also pays wages and utility bills totalling $257,000. He owns his show room; if he chooses to rent it out, he will receive $13,000 in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Tim does not operate this piano business, he can work as a paralegal, receive an annual salary of $23,000 with no additional monetary costs, and rent out his show room at the $13,000 per year rate. No other costs are incurred in running this piano business.Suppose that before you began your college application process, you were offered a job to work as a floor-trainer at a local fitness center, accompanied by a yearly salary of $27,000 (after taxes). Assume however that you decided to turn down this offer and instead attend a year of college. The total monetary cost of the year of college, including tuition, fees, and room and board expenses, is $43,000. You likely chose to attend college because Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.For several years, a large U.S. gift retailer has been purchasing a pen-and-pencil set from an overseas manufacturer for $27 per set. The retailer’s policy is to use a 120 percent markup on such stationery-related gifts. (a) Recently, a currency exchange-rate change has enabled the retailer to buy the pen-and-pencil set for only $21 per set. The retailer is considering passing along this cost decrease to his customers. If the retailer uses his usual markup for stationery-related gifts, calculate the new price the retailer would charge for this pen-and-pencil set. (b) A buyer in the retailer’s organization has taken the initiative to examine the historical data on this pen-and-pencil set. She obtained data for each of the past 18 years concerning the number of units sold during the year, the price during the year, and an index of economic activity in the retailer’s market area during the year, and then carried out a regression analysis on these data. The means for each…
- Paolo lives in New York City and runs a business that sells boats. In an average year, he receives $723,000 in revenue from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423.000; he also pays wages and utility bills totaling $267.000. He owns his showroom; if he chooses to rent it out, he will receive $2.000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Paolo does not operate this boat business, he can work as a financial advisor and receive an annual salary of $20,000 with no additional monetary costs. No other costs are incurred in running this boat business. Identify each of Paolo's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The rental income Paolo could receive if he chose to rent out his showroom The wholesale cost for the boats that Paolo pays the manufacturer The salary Paolo could earn if he worked as a…In Southeast Asia, Grab, the Singapore-based ride-hailing company, forced Uber out of the region in 2018 and acquired its local operations. A few months later, it expanded its app to offer its 130 million users not only food delivery and travel booking, but also financial and other services. These efforts helped Grab hit $1 billion in revenue in 2018 and attract more than $3 billion in fresh funding to expand. Later this year, it’ll add healthcare services from Ping An, the Chinese digital health giant. To Uber, Grab is a typical example of _________. * bargaining power of suppliers to the industry threat of substitute products or services rivalry among companies competing in the industry threat of new entrants to the industryJoe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Joe should A B C D quit his job. keep the job. work part-time. It is impossible to say with the information given in the problem
- A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. Suppose the sushi bar’s revenue from the first year is $120,000. What is the chef’s economics profit? 14,000 -14,000 66,000 68,000A coal-fired power plant can produce electricity at a variable cost of 4 cents per kilowatt hour when running at its full capacity of 30 megawatts per hour, 16 cents per kilowatt hour when running at 20 megawatts per hour, and 24 cents per kilowatt hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of 12 cents per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The cost of constructing a coal-fired plant is $50 million, but it costs only $10 million to build a gas-fired plant. a. Consider a city that has a peak afternoon demand of 80 megawatts of electricity. If it wants all plants to operate at full capacity, what combination of coal-fired plants and gas-fired plants would minimize construction costs? b. How much will the city spend on building that combination of plants? c. What will the average cost per kilowatt-hour be if you average over all 80 megawatts that are…Suppose that you are running a business, and you need some extra space for one year. Your bank offers you a loan of $200,000 at 0% interest. You consider borrowing this amount to buy the building, use it for one year, and then sell the building to pay back the loan. Unfortunately, the economy in which you are operating is experiencing deflation at the rate of 10% per year. After one year, you should be able to sell the building for___________. Suppose that owning the building for a year would earn you $12,000. To decide whether you will be better off by owning it for one year and then selling it, you seek advice from three different people: (1) Your brother says that you should not buy the building because in one year it will cost you $200,000. (2) Your accountant says that you should definitely buy the building because you can borrow $200,000 at zero interest while the building will generate $12,000 in extra income. Then when you sell it, you will be $12,000 richer. (3) Your…
- Kenji lives in New York City and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Kenji does not operate this guitar business, he can work as an accountant and receive an annual salary of $20,000 with no additional monetary costs. No other costs are incurred in running this guitar business. Identify each of Kenji's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The salary Kenji could earn if he worked as an accountant The wages and utility bills that Kenji pays The wholesale cost for the guitars that Kenji pays the manufacturer The rental income Kenji…Peru is growing relatively quickly and has begun to attract large inflows of foreign direct investment. While Peru relishes the benefit of the inflows, it is concerned about the potential negative effects if the foreign investors pull out their investments quickly. One particular reason for Peru to be concerned is that its banks have taken out large loans denominated in U.S. dollars and European euros from foreign banks. If the foreign direct investment is withdrawn quickly from Peru, what will be the effect on each of these items? A. Peru's money supply - B. Peru's exchange rate with other countries - C. Peru's exports - D. Peru's trade deficit - Answer Bank: No Effect, Increase or DecreaseQuick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of $25 each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 3 million per year. The old chips cost $6 each to manufacture, and the new ones will cost $8 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? Note: Enter your answer in millions.
