Electrical generation study of 56 British firms: a. VC = AVC(Q) VC = 1. 24Q + . 0033Q2 + . 0000029Q3 ? .000046Q2Z ? .026QZ + . 00018QZ2 b. MC = 1. 24 + . 0066Q + . 0000087Q2 ? .000092QZ ? .026Z + . 00018Z2 c. Z = 150(thousand) kilowatts SRAVC = 1. 24 + . 0033Q + . 0000029Q2 ? .000046Q(150) ? .026(150) + . 00018(150)2 SRAVC = 1. 39 ? .0036Q + . 0000029Q2 SRMC = 1. 24 + . 0066Q + . 0000087Q2 ? .000092Q(150) ? .026(150) + . 00018(150)2 SRMC = 1. 39 ? .0072Q + . 0000087Q2 d. d(SRAVC)/dQ = 0 (condition for minimum SRAVC) = ?. 0036 + . 0000058Q = 0
Q* = 620. 7 (million) kilowatt-hours/year e. SRAVC = 1. 39 ? .0036(620. 7) + . 0000029(620. 7)2 = . 27 pence SRMC = 1. 39 ? .0072(620. 7) + . 0000087(620. 7)2 = . 27 pence The two are equal, as the MC slices up through the lowest point in the AVC curve. 4. Breakeven analysis: a. A decrease in P leads to an increase in the breakeven point. b. An increase in V leads to an increase in the breakeven point. c. An increase in F leads to an increase in the breakeven point. 5. Cool-Aire Corporation and the probability of incurring a loss using z-values: a. P(Q < 33,000) = P[ z < {(33,000 ? 40,000)/4,000}] = P( z < -1. 5) = . 03920, or about a 4% chance of a loss. b. P(Q ? 33,000) = 1 ? P(Q < 33,000) = 1 ? .03920 = 0. 9608, or about a 96% chance of breakeven or better. o Chapter 10: Problems 2, 6, and 10 2. MTV operates in a highly concentrated near-monopoly market where fixed costs are low and hence intensity of rivalry is reduced. MTV also faces little supplier power from numerous non-unique musical groups. Even “competitor” music channels such as CMT (Country Music Television) are wholly-owned by MTV. The networks, in contrast, face the much greater supplier power of the NFL
The Essay on Project Report on Effect of Impurities on the Boiling Point
Introduction Project Report Boiling Point and Freezing Point : Generally, on cooling a liquid its temperature falls gradually till it starts freezing. At this point the temperature remains constant till whole of the liquid changes into solid. “The fixed temperature at which a certain liquid freezes, is termed as its freezing point.” Freezing point of water is 00C or 273 K. In the same ...
Total profits are ? = TR ? TC =17(35) ? 385 = $210. At Q = 35, ? /unit = 210/35 = $6. c. No, since MC = MR = P > ATC. Above normal profits are currently being made. 10. Simple clothing such as a golf shirt has distinguishable weight, cut, color, and sewing precision that are detectable at the point of purchase. Therefore, no adverse selection problem; you get what you knowingly pay for in golf shirts. High quality gemstones, on the other hand, are hard to distinguish from good fakes, and a general certificate of quality is not worth the paper on which it is printed.
Of course, a certificate from Tiffany’s provides a “hostage”? i. e. , a reputational asset that garners repeat customer business. Since this asset will be deteriorated by fraudulent certification of fakes, it credibly commits Tiffany’s to deliver what the buyer thinks he or she paid for; therefore little or no adverse selection problem. The quality of travel packages is verifiable only through your own or someone else’s experience, especially when dealing with unbranded independent tour operators who enter and exit with ease.
Also, since high school or college graduation happens only once, companies arranging tour packages specifically designed for this purpose will be less concerned about inducing repeat customer business. Therefore, buyers expect a major adverse selection problem, and low quality products predominate in the competitive marketplace. Of course, the same is true of unbranded mail-order auto parts, although at least in that case the seller is generally interested in repeat customer business.
