In week four, the innovative firm, Quasar, is introduced in the market structures simulation. Quasar is leading the way in the computer industry with the design and manufacturing of an all optical notebook computer. Through the market structures simulation, examples on how decision-making differ among the market structures of monopoly, oligopoly, monopolistic competition, and perfect competition. This simulation and the real-life scenarios detailed within, provide insight and understanding to the
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CASE STUDY 1 P = $60 - $0.005Q MR= $60- $0.01Q TC= $100,000 + $5Q + $ 0.0005Q² MC=$5+0.001Q Question C: Profit Maximization MR = MC 60-5 = 0.001Q+0.01Q 55 = 0.001Q Q = 55/0.011 Q = 5000 P = 60- 0.005 (5000) P = 60 - 25 P = $35 TR = Q X P TR = 5000 - 35 TR = $175,000 TC = 100 000 + (5 X 5000) + (0.0005 X 5000²) TC = $137,500 π = TR - TC = $175 000 - 137 500 = $37,500 The profit is maximized when Marginal Cost is the same as Marginal Revenue, and the
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| |TC 25-20 |A Leader’s Guide To After Action Reviews |Sept 93 |All | |TC 25-10 |A Leader’s Guide To Lane Training |Aug 96 |Chapter 5 | Student Provide Slides to students one day prior to the start of class. Students Study must be prepared to discuss the Slides during class. Scan TC 25-20. Assignments Instructor One instructor, familiar with TC 25-20, Requirements
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SEMESTER 2014 MANAGERIAL ECONOMICS – BMME5103 ASSIGNMENT (60%) Name: NGUYỄN THỊ MINH HIỀN Class: MBAOUM0514-K14A Question 1 a. What is (are) the main difference(s) between a monopolistically competitive market and a monopoly market? Their characteristics are different: |Monopolistically competitive market |Monopoly market | |Large number of small firms:
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P = 350 c. Q = 850, P = 383.33 4) For each of the following cost functions, find MC, AC, and AVC. a. TC = 40,000 + 20 Q b. TC = 1000 + 2Q + 0.1 Q2 Answer: a. MC = 20 AC = (40,000/Q) + 20 AVC = 20 b. MC = 2 + 0.2Q AC = (1000/Q) + 2 + 0.1Q AVC = 2 + 0.1Q 5) For each of the following cost functions, if possible, find minimum AC and minimum AVC. a. TC = 40,000 + 20 Q b. TC = 1000 + 2Q + 0.1 Q2 Answer: a. Set MC = AC. 20 = (40,000/Q) + 20 In this case, AC is decreasing everywhere
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Analysis of Costs and Income of the M.S.U.F.C.U ATM Network* Brian R. Armstrong Jeffery K. Barron Jeffrey D. Elgas April 26, 2002 Abstract. We examined the profitability of the automated teller machine (ATM) service provided by the Michigan State University Federal Credit Union (M.S.U.F.C.U) for one month. The cost of operating each M.S.U.F.C.U ATM in the 76-machine network was determined. We constructed a tool for determining the monthly profit for the M.S.U.F.C.U ATM
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Q.3 True or False and why? “If it cost $20 on average to produce 100 units of x and it costs $20.20 on average to produce 101 units of x, then the marginal cost when producing unit #101 is 20 cents” It is wrong. MC=∆TC∆Q TC of 100 units is 20x100=2000 TC of 101 units is 20.2x101=2040.2 MC=2040.2-2000101-100=40.2 Q.4 Having just completed a class in “production and costs”, Rohan, the owner of Zee Industries, decided to pay his workers a wage equal to the value marginal
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transplant services * Gaining market share increases financial risk of program because higher volume increases likelihood of attracting higher-risk patients * Organ allocation system: allow sicker patients * TC of all phases of liver transplant = $500,000 quadruples if re-transplant is required or other complications occur * Outlier protection: critical when costs vary extremely * LTNET contract req’s Dr. Anjali Desai approval (surgical
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Cash flow from assets (-ve expansion) = Cash flow to bondholders (-ve borrowing)+ Cash flow to shareholders (-ve borrowing) 2 Cash flow from assets (CFFA) or Free cash flow (FCF) =operating cash flow-net capital spending-additions to net working capital Operating cash flow = EBIT+D-T=NI+D+I Net capital spending = Ending NFA-Beginning NFA+D also NCS=Fixed assets bought-fixed assets sold Additions to NWC = Ending NWC-Beginning NWC Cash flow to shareholders = dividend paid-net new equity= dividend
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cost (TC) function in terms of Q. d. Specify the marginal cost function. a. Total revenue function in terms of Q: We rewrite the demand curve in terms of Q. P=(120,000-Q)/10,000; P=12-Q/10,000; Then, we multiply by Q to find the total revenue (TR). TR=P.Q; TR=(12-Q/10,000)xQ; TR=12Q-Q^2/10,000; b. The marginal revenue function: MR=∂TR/∂Q=12-2Q/10,000; MR=12-Q/5,000; c. The total cost function (TC) in terms of Q. Fixed Costs (FC)=$12,000; Variable Costs (VC)=$1.50. TC=FC+VC
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