Skip to main content

Price/Output Determination.

1) Price/Output Determination. The City of Ithaca, New York is considering two proposals to provide its city government the service of computer maintenance. First, a national computer maintenance and sales franchise has offered to purchase the city's computer equipment at an attractive price in return for an exclusive franchise on computer maintenance. A second proposal would allow several small companies to provide the service without any exclusive franchise agreement or competitive restrictions. Under this plan, individual companies would bid for the right to provide service in a given department. The city would then allocate business to the lowest bidder.
The city has conducted a survey of its department to estimate the amount they would be willing to pay for various amounts of computer maintenance. The city has also estimated the total cost of service per department. Service costs are expected to be the same whether or not an exclusive franchise is granted.
A. Use the indicated price and cost data to complete the following table.
Hours of Computer Maintenance per Month Price per Hour
Total Revenue Marginal Revenue
Total Cost
Marginal Cost
0 $75.00 $0 --
1 72.50 $50.00
2 70.00 50.00
3 67.50 50.00
4 65.00 50.00
5 62.50 50.00
6 60.00 50.00
7 57.50 50.00
8 55.00 50.00
9 52.50 50.00
10 50.00 50.00
B. Determine price and the level of service if competitive bidding results in a perfectly competitive price/output combination.
C. Determine price and the level of service if the city grants a monopoly franchise.
Click Here For More Details on How to Work on this Paper......
Need a Professional Writer to Work on this Paper? Click Here and Get this Essay Done ………

2) Price Fixing. Three leading toxic waste disposal companies have entered into a secret cartel to fix prices and allocate business in the upper Midwest. The marginal costs per unit for toxic waste disposal services
are as follows:
Toxic Waste (000) Ann Arbor Services, Inc.
(A) BIG Environmental, Ltd.
(B) Chicagoland Disposal, Inc.
(C)
1 $10 $10 $ 5
2 15 10 10
3 20 15 15
4 25 20 20
5 30 25 25
A. Determine the cartel's optimal allocation of output and maximum profit contribution if it sets Q = 8(000) and P = $20.
B. Calculate the perfectly competitive industry price for Q = 8.
C. How much output would a perfectly competitive industry supply at P = $20?
D. Describe the value to society of breaking up the cartel.
3) Price/Output Determination. Cold Case, Inc., produces beverage containers used by fast food franchises.
This is a perfectly competitive market. The following relation exists between the firm's beverage container output per hour and total production costs:
Total
Output Total
Cost
0 $ 35
1,000 85
2,000 145
3,000 215
4,000 295
5,000 385
6,000 485
7,000 610
A. Construct a table showing the marginal cost of paper cup production.
B. What is the minimum price necessary for the company to supply one thousand cups?
C. How many cups would the company supply at industry prices of $75 and $100 per thousand?
Click Here For More Details on How to Work on this Paper......
Need a Professional Writer to Work on this Paper? Click Here and Get this Essay Done ………

Comments

Popular posts from this blog

(CLINICIANS-END USERS; PATIENTS AND VENDORS)

Before any health information system can be successfully implemented, there must be a team of experts who understand the vision and mission of both the health care organization and its stakeholders. Strategic health care leaders are positioned to propose system upgrades and/or implementations that can withstand inevitable organizational changes. Health information systems’ leaders understand that data is the overall management of the availability, usability, integrity and security of the data. Choose at least three health information systems’ leaders and/or stakeholders, and define their role in the implementation of health information systems (CLINICIANS-END USERS; PATIENTS AND VENDORS). All the following items must be addressed in your paper: • Compare and contrast the limitations and opportunities in enterprise-wide data. Defend your technology infrastructure’s ability to support organizational leadership and end-user needs. • Explain the economic impact of your proposed system acqu...

Strategic HR critically assess the 3 main approaches to HRM (best practice/best fit /configurational) Use examples where companies might use each and why.

Strategic HR critically assess the 3 main approaches to HRM (best practice/best fit /configurational) Use examples where companies might use each and why. write an argumentative essay answering one of the following questions, drawing from concepts and theories discussed so far this semester. Using literature, critically assess the 3 main approaches to HRM (best practice/best fit /configurational) Use examples where companies might use each and why. Workforce Planning Critically discuss the crucial components of strategic workforce planning in an industry of your choice. What are the challenges and how may these be addressed? Use literature and industry examples. Guidelines for the essay: • ● A minimum of 10 Academic references are to be used. • ● You should use the academic third person writing style as outlined in the Q Manual. • ● It is important that you use peer reviewed academic journal articles for the basis of your academic discussion. You should be aiming to draw on at least 10...

What are the methods a nurse can use to gather cultural information from patients?

What are the methods a nurse can use to gather cultural information from patients? How does cultural competence relate to better patient care? Discuss the ways in which a nurse demonstrates cultural competency in nursing practice. Click Here For More Details on How to Work on this Paper...... Need a Professional Writer to Work on this Paper?  Click Here and Get this Essay Done ………