If you are trying to determine the value of a

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Managerial Economics
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Chapter 7 / Exercise 5
Managerial Economics
Froeb/McCann
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6.If you are trying to determine the value of a business, which of the following factors would be irrelevant?
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Managerial Economics
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Chapter 7 / Exercise 5
Managerial Economics
Froeb/McCann
Expert Verified
7.A basketball manufacturer is considering a number of options for its new factory. Given the following costs and benefits of the four different factory configurations, what are the marginal costs and benefits of the Extra Large configuration relative to the Large configuration?Total CostTotal BenefitConfiguration A(Small)$45,000$70,000 Configuration B(Medium)120,000170,000 Configuration C (Large)240,000300,000 Configuration D (Extra Large)400,000420,000
8.A basketball manufacturer is considering a number of options for its new factory. Given the following costs and benefits of the four different factory configurations, which Configuration should they select?Total CostTotal BenefitConfiguration A(Small)$45,000$90,000 Configuration B(Medium)120,000180,000 Configuration C (Large)240,000290,000 Configuration D (Extra Large)400,000420,000
9.Which of the following would be considered an extent decision?a.A business is considering diversifying into a new line of business. b.A business is considering shutting down operations. c.A business is considering the sale of an underperforming line of business. d.A business manager is trying to decide how many workers to hire for a new line of business.
10.A computer manufacturer shares its production capacity across two separate products, computers and printers. If the profitability of selling printers decreases, then the company will find that the

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