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Economics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson
Edition 15ISBN: 978-1285453538Economics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson
Edition 15ISBN: 978-1285453538 Exercise 7
Use the information in Exhibit 4 of this chapter to answer the following:
a. How many employees (operators) would Compute- Accounting hire at a weekly wage of $250 if it were attempting to maximize profits?
b. What would the firm's maximum profit be if its fixed costs were $1,500 per week?
c. Suppose there were a decline in demand for accounting services, reducing the market price per monthly statement to $ 150. At this demand level, how many employees would Compute-Accounting hire at $250 per week in the short run? Would Compute-Accounting be able to stay in business at the lower market price? Explain.
a. How many employees (operators) would Compute- Accounting hire at a weekly wage of $250 if it were attempting to maximize profits?
b. What would the firm's maximum profit be if its fixed costs were $1,500 per week?
c. Suppose there were a decline in demand for accounting services, reducing the market price per monthly statement to $ 150. At this demand level, how many employees would Compute-Accounting hire at $250 per week in the short run? Would Compute-Accounting be able to stay in business at the lower market price? Explain.
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Economics 15th Edition by James Gwartney,Richard Stroup,Russell Sobel,David Macpherson
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