Blue ridge bicycles uses a standard part in the manufacture of several of its bikes. the cost of producing 43,000 parts is $142,000, which includes fixed costs of $68,000 and variable costs of $74,000. the company can buy the part from an outside supplier for $3.60 per unit, and avoid 30% of the fixed costs. assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $14,000 profit. if blue ridge bicycles makes the part, what will its operating income be?

Based on this model, households earn income whenfirms purchasegoods and services in factor markets. suppose eileen earns $575 per week working as an analyst for a-plus accountants. she uses $10 to buy a box of aspirin at pillmart pharmacy. pillmart pharmacy pays clancy $250 per week to work the cash register. clancy uses $125 to purchase tax services from a-plus accountants. identify whether each of the following events in this scenario occurs in the factor market or the product market. event factor market product market eileen earns $575 per week working for a-plus accountants. eileen spends $10 to buy a box of aspirin. clancy spends $125 to purchase tax services from a-plus accountants. which of the elements of this scenario represent a flow from a firm to a household