Skateboards must be produced with exactly 4 wheels and 1 board for each skateboard. (Suppose that no assembly is required, so labor is not an input.) Let Q represent the number of skateboards, W the number of wheels, and B the number of boards. The price of a wheel is PW, and the price of a board is PB.
a. Write down the production function for skateboards, Q(W, B).
b. Derive the long-run total cost function for producing skateboards, LRTC(Q, PW, PB).
c. Draw a graph of the demand curve for wheels if the firm wants to produce 100 skateboards.

Evelyn would like to open a small business that is categorized as a being in the distribution industry. to do this she could open a establishment.

The following data pertains to activity and costs for two months: june july activity level in 10,000 12,000 direct materials $16,000 $ ? fixed factory rent 12,000 ? manufacturing overhead 10,000 ? total cost $38,000 $42,900 assuming that these activity levels are within the relevant range, the manufacturing overhead for july was: a) $10,000 b) $11,700 c) $19,000 d) $9,300

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?