Suppose You Manufacture 10 Million Hard Drives Per Year Specifically

question 11

Short Answer

Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers.Suppose your average variable cost C=$20/unit,annualized cost of investment to build a hard drive factory I=$30 million,and the market price (bailout market price in the event Dell does not buy)Pm=$22/unit.If Dell agrees to purchase the 10 million hard drives at a price P*=$25/unit and subsequently renegotiates to only purchase for $22.50/unit,what is your company's new "rent"?

---

Definitions:

Musculoskeletal Disorders

Injuries or disorders affecting the human body's movement or musculoskeletal system, including muscles, nerves, tendons, joints, cartilage, and spinal discs.

Noise-Induced Hearing

Hearing loss or impairment resulting from exposure to loud noises or sound levels that damage the auditory system.

Crowding

The perception of having less space than is desired, often leading to a sense of discomfort or stress.

Density

A measurement that reflects how much mass is contained in a given volume of a substance or object.