C-town brewery brews two beers: Expansion Draft and Burning River. Expansion draft sells for $14 per barrel whileBurning River sells for $10 per barrel. Producing a barrel of Expansion Draft takes 5 pounds of corn and 8 pounds ofhops. Producing a barrel of Burning River requires 2 pounds of corn, 8 pounds of rice, and 7 pounds of hops. Thebrewery has 770 pounds of corn, 490 pounds of rice, and 320 pounds of hops. Assuming a linear relationship, use theExcel Solver to determine the optimal mix of Expansion Draft and Burning River that maximizes C - town's revenue.Decision for expansion draft Decision for burning river Total sales Resources Used Corn Rice Hops

Now, let's set up these equations in Excel and use Solver to find the optimal solution: 1. Open…

Answered: C-town brewery brews two beers:…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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What is die difference between accounting and economic profit?
Consider a corn farmer with one acre of land. In addition to land, other factors include quantity of seeds, fertilizer, water, and labor. Assume the farmer has already decided how much seed, water, and labor he will be using this season. He is still deciding on how much fertilizer to use. Units of Fertilizer Total Ears of Corn Marginal ears of Corn 1 100 2 250 3 425 4 550 5 600 6 525 (a) Determine the marginal ears of corn and complete the table. (b) At what point does diminishing returns set in for the farmer? Justify your response. (a) Catherine buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street, intending to spend $50,000 on repairs and then sell the house for $400,000. Last week, the city government announced a plan to build a new landfill on Pine Street just down the street from the house Catherine purchased. As a result of the city’s announced plan, Catherine is weighing two alternatives: She can go…
A tuition agency hires tutors to teach students. The following table displays how total outputincreases as tutors increase.No. of Tutors 1 2 3 4 5Total No. ofStudents4 10 18 24 3Tutors cost $50 each regardless of how many students each tutor has. The agency paid $500 in non-refundablemarketing fees to set up the business as a fix cost. In the short run, considering the shut-down condition, whatis the lowest price per student Tom’s tuition agency can charge? Explain your answer.
You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt’s opportunity costs comprise * If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt’s accounting profit? *$10,000-$40,000$460,000$0Given the above situation, what is your aunt’s economic profit? *$10,000-$40,000$460,000$0
Blake decides to spend a spring day in the field planting wheat with some help from some workers he hires. Blake earns total revenue of $870. Blake incurs the following costs: $50 for renting a tractor, $150 for fertilizer, and $100 for wages paid to workers. Blake used $5000 that he could have invested in his savings account at 10 percent interest to organize his spring day planting wheat. In addition, Blake gave up $130 he could have earned at his other job in deciding to plant wheat. 1. What is Blake’s accounting profit? 2. What is the total opportunity cost Blake incurred for his spring day in the field planting wheat? 3. What is Blake’s economic profit?
Blake decides to spend a spring day in the field planting wheat with some help from some workers he hires. Blake earns total revenue of $870. Blake incurs the following costs: $50 for renting a tractor, $150 for fertilizer, and $100 for wages paid to workers. Blake used $5000 that he could have invested in his savings account at 10 percent interest to organize his spring day planting wheat. In addition, Blake gave up $130 he could have earned at his other job in deciding to plant wheat. 1. Refer to Scenario above. What would Blake’s accountant most likely figure the total cost of his wheat planting would be? a. $25 b. $130 c. $180 d. $300
Owner owns a pizza shop with a single employee. If employee works x hours, he can produce sqrt x pizzas.Each pizza sells for £6. cost to employee of working x hours is c(x)=x. If emplyee can enjoy £5 from staying at home and no effort. How much would he have to receive from owner for producing effecient amount of pizzas? a)14 b)36 c)27 d)42 e)9
1. April quit her job as an accountant at Ernst and Young, where she was paid $45,000 per year. She started her own landscaping business. She rents machines and tools for $50,000 and pays $10,000 as wages to her help. These are her only costs. April earned total revenue of $100,000. a. Her accountant calculates her profit as $50,000. b. Both answers A and B are correct. c. She has an economic loss. d. Her explicit cost is $105,000. 2. Which of the following does NOT influence the price elasticity of demand? a. the price of the good relative to total income b. the number of substitutes available to consumers c. the amount by which the demand curve shifts when the price of another good changes d. the time period buyers have to respond to a price change 3. If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent, then demand is a. inelastic. b. unit elastic. c. elastic. d. perfectly inelastic. 4. Goods that can be produced at a…
when samsung reallocates its resources to produce 3.75 million tablets instead of 2 million tablets the opporunity cost a. 1.75 million tablet b 1.75 million phone c. 7 million phone d.7 million tablet
Let a = 8 and k = 1. Compute the equilibrium prices, quantities and profits. .
QUESTIONS are based on Carl's Jr case study article 1. Discuss what are potential sources of competitive advantage for a company? Give examples 2. Argue is a competitive advantage sustainable? Give examples 3. Conduct an analysis of the strengths, weaknesses, opportunities, and threats (a SWOT analysis) of Carl’s Jr. 4. What changes should Carl’s Jr. make in order to develop a sustainable competitive advantage? (Hint: to help answer this question, think of how you might further segment the YHG group that Carl’s Jr. is trying to sell to, and develop a strategy around these subgroups.)

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