Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $20,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $13,000. a. If Joe owns the rights to the river, which of the following is the most likely outcome? O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute. O Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. b. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome? Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute.

Howard Weiss, Inc., is considering building a sensitive new radiation scanning device. His managers believe that there is a probability of 0.40 that the ATR Co. will come out with a competitive product. If Weiss adds an assembly line for the product and ATR Co. does not follow with a competitive product, Weiss's expected profit is $40,000; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $20,000 profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $600,000; if ATR does compete for this market, Weiss expects a loss of $100,000. a) Expected value for the Add Assembly Line option = $ (enter your answer as a whole number).

Build New plant option=

Hungry Henry's is a take-out pizza chain owned by Dominic Stevens that operates several locations in a city of 45,500 people with an additional 21,500 college students attending the local community college. A specific Italian concept has opened in the area and is offering their pizzas at a 21% lower price than Hungry Henry's pizzas, despite lower quality and quantity of ingredients. As a result, Dominic has identified a decrease in business, particularly among students. What is the effectiveness of the pricing strategy used by the new competitor? What recommendations would you give Dominic to compete with the new rival? What are three techniques you recommend that restaurants can utilize to convey the value of their products in terms of quality, rather than just low cost, to potential customers?

Use excel and show formulas   Benson Enterprises is deciding when to replace its old machine. The machine’s current salvage value is $1.2 million. Its current book value is $1 million. If not sold, the old machine will require maintenance costs of $420,000 at the end of the year for the next five years. Depreciation on theold machine is $200,000 per year. At the end of five years, it will have a salvage value of $220,000. A replacement machine costs $3.5 million now and requires maintenance costs of $160,000 at the end of each year during its economic life of five years. At the end of five years, the new machinewill have a salvage value of $540,000. It will be fully depreciated using the three-year MACRS schedule. In five years a replacement machine will cost $4,000,000. Pilot will need to purchase this machine regardless of what choice it makes today. The corporate tax is 35 percent and theappropriate discount rate is 10 percent. The company is assumed to earn sufficient revenues to…

To compete with XEROX  which had a competitive advantage in technical service for copiers , canon  a used the internet to substitute for xerox technical services capability by developing higher stronger and faster service line  b did not try to beat xerox on its strong service capability but on the price of its copiers  c substituted for xeroxs technical services capability by developing highly reliable copiers that needed little service  d substituted for xeroxs technical services capability by developimh its own highly efficient capability of technical service , through an extensive bench marking of xeroxs processes and practices

Techno Corporation is currently manufacturing an item at variable costs of $5 per unit. Annual fixed costs of manufacturing this item are $140,000. The current selling price of the item is $10 per unit, and the annual sales volume is 30,000 units. so  Techno can substantially improve the item’s quality by installing new equipment at additional annual fixed costs of $60,000. Variable costs per unit would increase by $1, but, as more of the better-quality product could be sold, the annual volume would increase to 50,000 units. Should Techno buy the new equipment and maintain the current price of the item? Why or why not?