The six-tenths rule

Question: The six-tenths rule quantifies the relationship between the relevant costs of a firm's decision to expand and the increased internal economies that result from that expansion. As a result of an expanding printing industry, the owner is considering taking on new business, which will necessitate a dramatic increase in processing capacity. This will require the installation of additional technical capacity at a cost of £30000 and will entail the employment of three additional workers to deal with the increased processing capacity. An adjacent unused building, which is also owned by the firm, will need to be refurbished at a cost of £22500 to accommodate the additional technica... click for more

Internal economies of scale & six-tenths rule.

Please can you help me understand the following question for exam revision purposes. Can you include the step by step workings so i can understand how it should be done, as well as the final solution. Question: The six-tenths rule quantifies the relationship between the relevant costs of a firm's decision to expand and the increased internal economies that result from that expansion. Given that C1 represents the relevant costs incurred in delivering an installed capacity of Y1 and C2 the new relevant costs incurred in delivering a new installed capacity of Y2, derive a mathematical relationship that relates n, the scaling factor to C1, C2, Y1 and Y2 ... click for more

This is a matrices problem and in particular using Cramer's Rule to solve a National Income Model.

Write the following National Income Model in the form Ax = b and solve using Cramer's Rule: C=α+βY I=γ+θr Y=C+I Where income(Y), consumption(C) and investment(I) are endogenous; the rate of interest(r) is exogenous and α, β, γ and θ are known constants. Also find the slope of the IS curve.

Matrices Eigenvalues

I need help with this problem. I've been working on it for a while and unable to solve it. I need to understand how to solve this problem through examples. With step by step breakdown to fully complete the problem. Thank you for your help it is greatly appreciated!

At what price is this market in equilibrium?

Market Equilibrium (example question) The following relationships describe monthly demand and supply conditions in the metropolitan area for recyclable aluminum: QD = 317,500 – 10,000P (Demand) QS = 2,500 + 7,500P (Supply) Where Q is quantity measured in pounds of aluminum scrap metal, and P is the price in cents per pound. Complete the following table: Price Quantity Supply Quantity Demand Surplus (+) / Shortage (-) 15 ¢ 115,000 __________ ___________ 16 ¢ __________ 157,500 ___________ 17 ¢ __________ __________ ___________ 18 ¢ __________ __________ ___________ 19 ¢ __________ __________ ___________ 20 ¢ __________ __________ __... click for more