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1. The Black Diamond Company mines coal. It would like to build a processing plant right next to its major mine. The location of this mine is relatively remote and is not near other coal mines. Tax considerations, as well as government regulations, dictate that the processing plant be owned and operated by some independent company (other than Black Diamond). Your company, the Greg Norman Coal Company, is considering building and operating the plant for Black Diamond on a contract basis. Your job is to negotiate the contract with Black Diamond. Discuss the terms that you will try to get Black Diamond to agree to in the contract. Explain why these terms are important to you.
The service times at server i are exponential with rate ¼i, i = 1, 2, 3. If ¼1 = 7, ¼2 = 3 and ¼3 = 5, what proportion of time is each server idle?
Woodland Instruments, Company operates in highly competitive electronics industry. Prices for its R2-D2 control switches are stable at $100 each.
Suppose you have a machine tool manufacturing company that produces one standardized type of tool. Your total costs change as demonstrate in the table below:
Use the concepts of economies and diseconomies of scale to describe the shape the companies long run ATC curve. Determine the concept of minimum efficient scale?
The following table demonstrate yearly sales information for Landrover, Inc., over the ten-year 1998-2008 period:
1.Why is the profit maximising price under monopoly greater than marginal cost? In what way can this be seen as inefficient?
Why might anti-gouging laws not increase social welfare, or at least why might they lead to consequences which are unintended by the government?
How would you estimate the additional dollar cost of each additional salesperson? Based on your company's past sales experience
Carlos Gomez is the receiving supervisor for a large grocery store. Trucks arrive to the loading dock at an average rate of four per hour, according to a Poison distribution, for 8 hours each day
From the first e-Activity, speculate how the monopolist could be more efficient in the long-run considering new competition has entered the marketplace
What might have motivated management to make this dramatic increase in leverage, given that it placed the firm in a near "financial crisis"?
Briefly define the Laws of Demand and Supply and how these Laws can answer fundamental economic question and what other methods can you think of for allocation of resources?
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