The average cost for power-production firmis AC = 100 - 10Q + Q2 where Q ismeasured in billion kilowatt hours per day.At the current regulated price, consumersdemand 4 billion kilowatt hours per day. Isthis market a natural monopoly? If demandincreases to 10 billion kilowatt hours, is thismarket a natural monopoly? Show youranswer in a diagram.please help me with this question thankyou so much!

To determine if the market is a natural monopoly, we need to analyze the average cost curve and…

Answered: The average cost for power-production…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Please read below scenario in which a consumer explains how she made purchasing decision for a car. First of all, I decided on the price and security features of car. Then, I determined my criteria about other features such as the oil amount consumed per 100 km, diesel or gasoline and so on. When I searched for information on the Internet, I felt that Brand X can offer me favorable alternatives. I visited one of the showrooms of Brand X. I loved this red car and purchased it. Please select the name of Hierarchy of Effects that the consumer likely used. a) The Standard Learning Hierarchy b) The Low-Involvement Hierarchy c) The Experiential Hierarchy d) All the above
Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini- kegs for $21. Assume that there is 0.355 liter per beer in a multipack. On a cost-per-liter level, which offers customers the best price? In comparing the price of a 24-pack to 12-pack on a per-liter basis, what kind of price segmentation is being used? In comparing the price of a 24-pack to 5-liter mini-keg, what kind of price segmentation is being used? Which psychological effects might drive customers to purchase a 5-liter keg?
When product demand fluctuates and yet you maintain aconstant level of employment, some of your cost savingsmight include:a) reduction in hiring costs.b) reduction in layoff costs and unemployment insurancecosts.c) lack of need to pay a premium wage to get workers toaccept unstable employment.d) having a trained workforce rather than having toretrain new employees each time you hire for anupswing in demand.e) all of the above.
The pottery classys clay for $6 and sells the clay for $16 during the day. At the end of the day, any leftover clay is sold to the pottery students for $3. What is the difference between the underage cost and overage cost? Answer to the nearest whole number.
Describe "part-worth utility" and explain how it assists in Conjoint Analysis to create a variety of products. Why is profit maximization not the main goal for marketing professionals like you? What else in the business or product would you want to uphold to ensure its long- term welfare? Explain why.
You manufacture kitchen appliances and worry about the cost ofa shut down due to a shortage of parts. You know that for each day you are shut down, it costs you $340,000 in lost salary and production, or $400 per unit per day. Because of this, you have thought that you should have a 97% service level on parts. The parts come as kits from a supplier and all your fiml does is assemble the appliances. Your daily demand is 850 appliances, a volume set by contract, thus there is essentially no demand uncertainty. The lead time for the kits is 10 days, with a standard deviation of lead time of 3 days. Having a kit early costs you $5 per unit per day. You have two options: [1] to have safety stock, or [2] to use safety lead time. Calculate each. How manyunitsofsafety stockwouldyourecommend thatthe firm have? Answer [2] How much days of safety lead time would you recommend that the firm use? Answer
What is dependent demand? And independent demand?
Please only answer D-1 and D-2 Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Priceper Unit Variable Costper Unit Units Soldper Year Cleaning $ 400 $ 220 8,500 Filling 680 660 1,200 Capping 1,550 920 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $540,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income. A cleaning “unit” is a routine teeth cleaning that takes about 45 minutes. A filling “unit” is the work done to fill one or more cavities in one session. A capping “unit” is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). Required: a. Given this information, how…
Doctor Smith just returned from the Annual Physician’sOrthopedic Conference, where she saw a new hip jointreplacement demonstrated. She decides she wants to startusing the replacement joint at Arnold Palmer Hospital. Whatprocess will Dr. Smith have to go through at the hospital tointroduce this new product into the supply chain for futuresurgical use?
Explain how RPM can be used to increase retailer demand for inventories and thereby increase manufacturer profit. Explain whether profitable RPM can either increase or decrease welfare and how this depends on the variation in demand. Use diagrams and verbal explanation to explain your answer. Demonstrate the profit and welfare consequences of RPM by solving the 'RPM and Inventories Model' model done in class for the parameter value indicated below. RPM and Inventories Model Manufacturer MC = 0, Dealer MC = 0, Low and high demand are equally likely Low demand: qL = 1 - pL, High demand: qH = S(1 - pH) Parameter value: S = 4
Finally, use the utility optimizing condition that the ratio of Marginal Utility to Price for any good has to be the same across all goods to justify why it may be rational behavior to buy an item that is expensive compared to other items.
can you please help me answer this question.... Rebar Company prepared the following analysis of its year-end inventory on December 31. First, determine the total lower of cost or market value for each product in Rebar Company's inventory. Second, prepare the journal entry needed at year-end to value the inventory at LCM, if applicable. Historical Cost Replacement Cost Product Quantity per unit per unit A 17 $430 $499 B 140 325 299 C 38 75 69

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