A firm purchased copper pipes a few years ago at $ 10 per pipe and stored them, using them only as the need arises. The firm could sell its remaining pipes in the market at the current price of $ 9. What is the opportunity cost of each pipe and what is the sunk cost?
Answer to relevant QuestionsThere are certain fixed costs when you own a plane,’ [Andre] Agassi explained during a break in the action at the Volvo/ San Francisco tennis tournament, ‘ so the more you fly it, the more economic sense it makes. . . . ...A firm has a Cobb- Douglas production function, q = ALaKß, where a + ß < 1. On the basis of this information, what properties does its cost function have? For example, a U. S. chemical firm has a production function of q = ...California’s State Board of Equalization imposed a higher tax on “alcopops,” flavored beers containing more than 0.5% alcohol-based flavorings, such as vanilla extract (Guy L. Smith, “On Regulation of ‘Alcopops,’ ...A refiner produces heating fuel and gasoline from crude oil in virtually fixed proportions. What can you say about economies of scope for such a firm? What is the sign of its measure of economies of scope, SC?A firm that owns and manages rental properties is considering buying a building that would cost $ 800,000 this year, but would yield an annual revenue stream of $ 50,000 per year for the foreseeable future. For what range of ...
Post your question