Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 9, Problem 1.5CE
To determine

To find:Average operating expenditures per student are minimized.

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Why is cost-minimization analysis most likely to be useful for managers?
Consider the user cost of capital in the presence of taxes as shown below. The definitions of the variables and parameters are the same as discussed in class. Now we introduce an additional factor, an investment tax credit (ITC): rather than costing p k, a unit of capital costs (1- lTC)*p_k. That is, the government subsidizes the purchase of new capital, and the amount of the subsidy is given by ITC. Suppose the tax rate is 20%, ITC is 20%, growth rate of the price of capital is 0%, interest rate is 5% and the deprecation rate is 10%, what will be the user cost of capital? Round it to 2 decimal places. * R+d APK Pk UC3= 1-T 0.10 0.11 0.15 0.20
C&A Fast Food has four activities in serving a customer: greet customer, take order, process order, and deliver order. Each activity is staffed by one employee (for a total of four employees). The processing time for each activity is given as follows: Greet customer Take order Process order Deliver order Activity Processing time per customer 2 seconds 30 seconds 60 seconds 5 seconds Assume demand is unlimited. If one additional employee is added to the bottleneck activity, what will be the percentage change in process capacity?
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