Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $15 and the managers of Big Woods order 500 sheets of plywood, what is the total annual carrying costs of the inventory?
A) $8,500
B) $3,750
C) $7,500
D) $3,000
B) $3,750
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Identify the scenario that will cause the supply curve to shift to the left
a. Producer expects now that the price will be lower later b. Price decreases for a substitute in production c. Input price increases d. Increase in number of suppliers
Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?
Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of 5 per unit of output on the seller. The new equilibrium price is:
A. 10 B. 7 C. 15 D. 2
An entrepreneur is considering how many limousines to purchase when he starts up a limousine service. Below are his estimates of the number of limousine rentals the service will make during a year, depending on the number of limousines available.Number oflimousinesTotal numberof rentals13502650390041,10051,250After paying all non-interest expenses, the owner expects to net $10 per rental. Each limousine costs $50,000. How many limousines should he purchase if the real interest rate is 6.5%?
A. 2. B. 4. C. 3. D. 1.