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jekas [21]
3 years ago
5

Suppose the current market price of corn is $3.75 per bushel. Your firm has a technology that can convert 1 bushel of corn to 3

gallons of ethanol. If the cost of conversion is $1.60 per bushel, at what market price of ethanol does conversion become attractive?
Business
1 answer:
Aleks04 [339]3 years ago
5 0

Answer:

At 1.783 or more, the conversion yield better gain than sales the corn

Explanation:

The ethanol conversion become attractive if the cost for doing the conversion are lower than the sale revenue for the product.

<u>total cost: raw materials + conversion cost</u>

corn price:           $  3.75

conversion cost:  $  1.60

Total cost:            $  5.35

<u>output: gallon of ethanol per bushel</u>

3 gallons of ethanol per bushel

total cost / output = 5.35/3 = 1.783 cost per gallon

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If the natural rate of unemployment _____, the nonaccelerating inflation rate of unemployment _____, and the long-run phillips c
11Alexandr11 [23.1K]

If the natural rate of unemployment falls, the nonaccelerating inflation rate of unemployment falls, and the long-run Phillips curve shifts to the right.

A superb supply stock or a boom in combination supply will cause the Phillips curve to shift to the left. moreover, something that can purpose the overall delivery of products and offerings to increase can shift the Phillips curve to the left. The Phillips curve states that inflation and unemployment have an inverse relationship. higher inflation is associated with decreased unemployment and vice versa.

The Phillips curve was a concept used for manual macroeconomic policy inside the 20th century however become called into question by the stagflation of the 1970s. according to the NAIRU concept, expansionary financial policies will create the best temporary decreases in unemployment as the financial system will regulate the natural fee. moreover whilst unemployment is below the natural fee inflation will accelerate.

Learn more about Phillips curve here:-brainly.com/question/28005556

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5 0
1 year ago
The local baseball team owner hires you to help maximize the team's profits. You are told that costs are constant because enough
ozzi

Answer:

increase price per ticket.

Explanation:

increase price per ticket in proportion to cost incurred.

set up an internal control system to ensure all revenue from ticket are well accounted for.

3 0
3 years ago
The plaintiff in a criminal case is the government/district attorney.<br> True<br> False
Licemer1 [7]

Answer:

False

Explanation:

4 0
3 years ago
Suppose that your firm has spent several decades establishing a well-known brand name through advertising. If other firms are pr
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Location because it was spent on most and the decades were filled with them
4 0
2 years ago
What is an example of a situation in which the cost of capacity is substantially more than the cost of waiting? What would the w
labwork [276]

Answer:

<em>Cost of Capacity, Cost of Waiting</em> and <em>Waiting Lines</em> which are concepts indicated in the question speaks to Queuing Theory under Operations Management.

The goal of studying this theory simply relates to Optimizing Efficiency.

Let's define the concepts highlighted in the question.

Capacity cost is defined as the total amount of expenses incurred by an organization to provide for or increase its ability to conduct business operations. It can also be referred to as the <em>cost of service</em>.

Cost of Waiting on the hand within the context indicated above is how much it costs a business to keep customers waiting.

The more customers leave without making a purchase or do not return because of frustrating wait times, the higher the waiting cost.

Waiting Line -  This is simply a line of people waiting to be attended to, or access a product or service. It could also refer to Assembly Line. Or simply, <em>a queue.</em>

Explanation:

Cost of Waiting plus Cost of Service equals Total Cost.

<u><em>An optimized situation</em></u><u> is where the total cost is at it's lowest</u>. Reducing capacity may reduce costs of service, but cause an upward spike loss of sales due to lost customers.

Excessive capacity, on the other hand, will reduce the loss of sales due to the loss of customers but lead to an increase in operating costs.

To answer the questions, an example of a situation in which the cost of capacity is substantially more than the cost of waiting is given below:

a) If One ATM can serve 3 customer in 2 Minutes, and ATM users arrive the ATM Gallery at the rate of 3 customers every 4 minutes, then haveing 5 ATM Machines installed at such a location would translate to higher cost of capacity in relation to cost of waiting (Assuming that the cost of purchasing the machines and profit accruable from the ATM use charges are not factors under consideration)

b) the waiting line in such a condition would be substantially smaller than an optimised gallery or close to zero

Cheers!

3 0
3 years ago
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