How to calculate Samsung’s cost (C(Q)) of producing 1,2,...15
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- What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?The U.S. government wants to determine whether immigrants should be tested for a contagious disease, and it is planning to base this decision on financial considerations. Assume that each immigrant who is allowed to enter the United States and has the disease costs the country $100,000. Also, assume that each immigrant who is allowed to enter the United States and does not have the disease will contribute $10,000 to the national economy. Finally, assume that x percent of all potential immigrants have the disease. The U.S. government can choose to admit all immigrants, admit no immigrants, or test immigrants for the disease before determining whether they should be admitted. It costs T dollars to test a person for the disease, and the test result is either positive or negative. A person who does not have the disease always tests negative. However, 10% of all people who do have the disease test negative. The government’s goal is to maximize the expected net financial benefits per…If my bus is 3.5 years old, what are the projected annual maintenance costs? (Enter a whole number) Age of Bus(years)Annual Maintenance Cost($)2.4 3502.3 3702.4 4803.1 5203 5905.8 5504.8 7503.8 8003.6 7904.9 9505.5 915
- 18. Suppose that the monthly marginal cost for firefighting portableTwo pumps capable of delivering 100 hp to an agricultural application are being evaluated in a present economy study. The selected pump will only be utilized for one year, and it will have no market value at the end of the year. Pertinent data are summarized as given follows. If electric power costs $0.10 per kWh and the pump will be operated 4,000 hours per year, which pump should be chosen? Recall that 1 hp = 0.746 kW.How many units of special lamp and the regular lamp should be produced per production period in order to maximize the the profit ?
- From the data given compute the contribution margin ratio for each of the products T and O. Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow.Airphone, Inc., manufactures cellular telephones at a pro-cessing cost of $47 per unit. The company produces an average of 250 phones per week and has a yield of 87%good-quality phones, resulting in 13% defective phones,all of which can be reworked. The cost of reworking adefective telephone is $16.a. Compute the quality-productivity ratio (QPR).b. Compute the QPR if the company increased theproduction rate to 320 phones per week while reducingthe processing cost to $42, reducing the rework cost to$12, and increasing the product yield of good-qualitytelephones to 94%.With fixed costs of Ksh. 400,000, a firm has average total costs of Ksh. 3,000 and average variable costs of Ksh. 2,500. Its output is?
- A manufacturing firm, Caleb Corp, produces and sells product in its home (US) market, and in a foreign market. There is inherent risk in the revenues collected from the foreign market due to volatility in the exchange rate. Under a benchmark strategy, all of the production takes place in the home country. The resulting expected profits for Caleb Corp are variable, due to variation in the exchange rate. As an approximation, the firm has estimated profits for five possible ranges of the exchange rate, with profit represented as a lottery, L= (.2, 150; .2, 200; .3, 220; .2,250; .1, 270) The probabilities are estimated probabilities for the different ranges. The outcomes in this lottery are the estimated final profit levels (not changes in profit). (a) Calculate the expected profit if the firm follows this benchmark strategy, i.e., E(L)A manufacturing firm, Caleb Corp, produces and sells product in its home (US) market, and in a foreign market. There is inherent risk in the revenues collected from the foreign market due to volatility in the exchange rate. Under a benchmark strategy, all of the production takes place in the home country. The resulting expected profits for Caleb Corp are variable, due to variation in the exchange rate. As an approximation, the firm has estimated profits for five possible ranges of the exchange rate, with profit represented as a lottery, L= (.2, 150; .2, 200; .3, 220; .2,250; .1, 270) The probabilities are estimated probabilities for the different ranges. The outcomes in this lottery are the estimated final profit levels (not changes in profit). Now suppose the firm can also buy forward contracts on foreign currency to neutralize the effect of the exchange rate on profits. Assume that these provide complete hedging, but that it involves an additional cost, so that following the…What is the max profit and number of units that must be produced and sold in order to yield the max profit?