The 2001 recession ended in november 2001 but the, Ask an Expert

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Q1. Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.

a.) What is the break even level of daily output for the firm?

b.) What is the degree of operating leverage when daily output is Q = 170?

Q2. The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession?

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Business Economics, Economics

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