For a natural monopoly in which economies of scale are taking place at all output levels, which of the following is true? A It would need a subsidy, if regulated to follow marginal cost pricing. B It should be taxed, if regulated to follow average cost pricing It would maximize total revenue rather than profits. It would produce the allocatively efficient output level, to maximize profit. D B) Its marginal cost exceeds its average total cost at all output levels.
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- A business marketer (who is ‘out’ or potential supplier) is keen to supply cold-rolled (CR) steel coils to amajor passenger car manufacturer, who has been buying the same material from three other suppliers onregular basis for the past few years. As per the purchase policy, the car manufacturer cannot buy anymaterial from more than three suppliers. What should the business marketer do to supply CR steel coils tothe major passenger car manufacturer?As a purchasing manager for a manufacturer of domestic appliances you are to source the door seal for a new model of microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been increasingly competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that permaseal Ltd has a substantially lower price than the other potential suppliers, including your current supplier Thermal bond Ltd. However, the last time you did business with permaseal was six years and at the time you experienced some quality and delivery problems. REQUIREMENT Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.Considering the situation of potential firms making agreements with incumbents within the framework of the basic assumptions of Bain's limit pricing theory, comprehensively evaluate the necessary explanations and explain the concept of "market entry" according to Bain..
- As a purchasing manager for a manufacturer of domestic appliances you are to source the door seal for a new model of microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been increasingly competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Ltd has a substantially lower price than the other potential suppliers, including your current supplier Thermalbond Ltd. However, the last time you did business with Permaseal was six years and at the time you experienced some quality and delivery problems. Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.Food Cost Percentage. With an overall cost of goods totaling $64,000 and sales of $181,000, what is the food cost percentage?As a purchasing manager for a manufacturer of domestic appliances you're to source the door seal for a new model of microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been increasingly competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that permaseal Ltd has a substantially lower price than the other potential suppliers including your current supplier Thermalbond Ltd. However the last you did business with permaseal was six years and at that time you experienced some quality and delivery problems. Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
- Table 15-21 Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination. COSTS REVENUES Quantity Total Cost Marginal Quantity Price Total Marginal Produced Cost Demanded Revenue Revenue $100 $170 1 $140 1 $160 $184 2 $150 $230 3 $140 4 $280 4 $130 $335 5 $120 6 $395 6 $110 7 $475 7 $100 $575 8. $95As a purchasing manager for a manufacturer of domestic appliances you are to source the door seal for a new model of microwave oven. the component has caused problems in the past but design problems have now been overcome. the market has been increasingly competitive and any problems with the new model could be disastrous. preliminary sourcing indicates that permaseal Limited has a substantially lower price than the other potential suppliers, including your current supplier Thermal Bond limited. however, the last time you did business with permaseal was six years and at the time you experience some quality and delivery problems. Explain in details how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.b. If you were concerned about low income individuals having access to water, what type of pricing structure would you use in your municipality? Explain.
- As a purchasing manager for a manufacturer of domestic appliances, you are to source the door seal for a new model of a microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Limited has a substantially lower price than the other suppliers, including your current supplier Thermalbond Limited. However, the last time you did business with Permaseal Limited was six years ago and at the time you experienced some quality and delivery problems. Required: Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.As a buying manager for a household appliance manufacturer, you are to supply the door seal for a new microwave oven model. In the past, the component created difficulties, but the implementation problems were now solved. The industry becomes more and more dynamic and any issues with the latest paradigm might be catastrophic. Preliminary procurement shows that Permeaseal Ltd, like the new Thermalbond Ltd provider, is significantly cheaper than other prospective suppliers. The last time you did business with Permeal, though, was six years and you had several issues of demand and supply. Requirement Explain in depth how you can do this procurement exercise to ensure you choose the right provider on a long-term basis,You are the product manager of a confectionery company that includes small plastic toys with its chocolate sweets. Having met a potential Thai manufacturer of these toys at a trade fair in Europe, you now visit the company in the north-eastern part of Thailand to finalize a two-year supply contract. Arriving there and talking to the sales manager, you are able to arrange a deal that supplies you with the toys at a third of the cost currently charged by your Portuguese supplier, but with equivalent quality and supply arrangements. In order to check the reliability of the manufacturing process you ask the manager to show you around the place. You are surprised to find out that there is no real workshop on the premises. Rather, the production process is organized such that at 6am about 30 men line up at the company’s gate, load large boxes with toy components on their little carts or motor-scooters and take the material to their homes. Your prospective supplier then takes you to one of…