Indifference Curve

A web-based company stocks and ships after-market auto parts. The company employs several workers to put together packages for shipment based on customers' online orders, and each worker assembles on average 4 packages per hour. Workers are unsupervised and earn $4.00 for each order they assemble. An inspector checks each order, and workers are only paid for orders that are assembled correctly the first time. Vice President of Operations has suggested that the per unit pay scheme be dropped in favor of a flat $14/hour wage rate. Should they adopt the suggestion and why?

Sustainable growth rate: Atlantic Transportation Co. has a payout ratio of 60 percent, debt-equity ratio of 50 percent, return on equity of 16 percent, and an assets-sales ratio of 175 percent. a. What is its sustainable growth rate? b. What must its profit margin be in order to achieve its sustainable growth rate?

Atlantic Transportation Co. has a payout ratio of 60 percent, debt-equity ratio of 50 percent, return on equity of 16 percent, and an assets-sales ratio of 175 percent. a. What is its sustainable growth rate? b. What must its profit margin be in order to achieve its sustainable growth rate?

College

You are saving for the college education of your two children.They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today.You estimate your children's college expenses to be $21,000 per year per child, payable at the end of each school year.The annual interest rate is 15 percent. How much money must you deposit in an account each year to fund your children's education? Your deposits begin one year from today.You will make your last deposit when your oldest child enters college.

Concentration Ratio & Herfindahl-Hirschman index

I'm having a problem with calculations. Please assist and show steps. An industry consists of 5 firms, with sales of $100,000, $500,000, $400,000, $300,000, and $200,000. Now, suppose the largest and smallest firms merge. -Calculate the four-firm concentration ratio (C4) before the merger. -Calculate the Herfindahl-Hirschman index (HHI) before the merger. -Calculate the four-firm concentration ratio (C4) after the merger. -Calculate the Herfindahl-Hirschman index (HHI) after the merger. Just on the surface it sounds like the U.S. Department of Justice would try to block the merger if it occurred. Am I correct?

Lerner Index

What is a Lerner index? If a manufacturing company has a rather unique product that sells for $15 per unit, and the marginal cost is $7.50 what is the Lerner index? Does this index indicate market power? Please step me through this.