Period forecast

1. 200

2. 200

3. 300

4. 400

5. 500

6. 200

regular time: $20 per unit (280 units per period maximum)

overtime: $30 per unit (40 units per period maximum)

subcontracting: not available

beginning inventory: none

carrying cost: $10 per unit per period

backorder cost: $50 per unit per period

how should overtime capacity be utilized? (in what period, and how many units)

a. 40 units in periods 1, 2, and 3

b. 40 units in periods 2, 3, and 4

c. 20 units in periods 1 through 6

d. 40 units in periods 3, 4, and 5

e. 20 units in period 3, 20 units in period 4, and 40 units in period 5,

Jason day company had bonds outstanding with a maturity value of $300,000. on april 30, 2017, when these bonds has an unamortized discount of $10,000, they were called in at 104. to pay for these bonds, day had issued other bonds a month earlier bearing a lower interest rate. the newly issued bonds had a life of 10 years. the new bonds were issued at 103 (face value $300,000).

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

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