You are trying to decide which of two automobiles to buy. The first is American-made, costs $28,500, and has a rated gasoline mileage of 28 miles/gal. The second car is of European manufacture, costs 30 CHAPTER 2 Introduction to Engineering Calculations $35,700, and has a rated mileage of 19 km/L. If the cost of gasoline is $3.25/gal and if the cars actually deliver their rated mileage, estimate how many miles you would have to drive for the lower fuel consumption of the second car to compensate for the higher cost of this car.

Suppose the number of firms you compete with has recently increased. you estimated that as a result of the increased competition, the demand elasticity has increased from –2 to –3 (i.e., you face more elastic demand). you are currently charging $10 for your product. what is the price that you should charge if demand elasticity is -3?

Evaluate a real situation between two economic actors; it could be any scenario: two competing businesses, two countries in negotiations, two kids trading baseball cards, you and another person involved in an exchange or anything else. use game theory to analyze the situation and the outcome (or potential outcome). be sure to explain the incentives, benefits and risks each face.

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is: