When the cost of a resource is sunk, then the dual price can be interpreted as the a.maximum amount the firm should be willing to pay for one additional unit of the resource. b.minimum amount the firm should be willing to pay for one additional unit of the resource. c.maximum amount the firm should be willing to pay for multiple additional units of the resource. d.minimum amount the firm should be willing to pay for multiple additional units of the resource.

A company uses 5000 items per annum which has a price of $2 each. The ordering costs are $150 per order and holding costs are $1.50 per item per annum. The company is offered a 5% discount (discounted price is $1.90) for orders of 5000 and over. Order cost and holding cost remain at $150 per order and $1.50 respectively. Assuming that the company orders 5000 items per order, calculate the number of orders per annum, average stock, annual stock holding cost, annual order cost, annual inventory cost and the total annual cost of items and inventory.

When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand . As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…

Jubilee Sports is planning to introduce a new line of tennis racquets. The fixed costs for the new line are $30,000 and the variable cost of producing each racket is $70.a) Write the linear cost equation.b) If the racket sells for $120, write the revenue function.c) Write the profit function.d) Find the number of rackets that must be sold in order to break even.e) What profit would be made if 1500 rackets were sold?