Economics homework help

Posted on 2014-03-18 09:40:00 in Economics by CINDY CHEN

1. A manufacturer of motorcycle batteries has a plant capacity of 100,000 per year. Overhead costs are $500,000 per year. Variable costs are $10 per unit. Sales have been running at 50,000 per year at a wholesale price of $25 each. Recently, a large department store offered to purchase an additional 50,000 batteries a year at $20 each. (a) Should they take the offer? Explain why or why not. (b) Suppose the department store offered to buy the entire output for $15. Should they take the offer? Explain



2. (a) Explain 3 reasons that justify federal assistance to farmers (b) Explain 3 arguments that criticize these programs (c) Explain why Congress passed a "Freedom to Farm" bill in 1996



3. Explain why you agree or disagree that farmers should be protected from overseas competition

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