1.A monopolist maximizes profit at the output rate where its total revenue equals total cost.
True
False
2. To maximize profit, the perfectly competitive firm charges a price equal to __________ while the monopolist charges a price __________.
marginal revenue; equal to marginal cost
marginal cost; greater than marginal cost
marginal revenue; less than marginal revenue
average total cost; greater than average total cost
3.Compared to the perfectly competitive firm, the monopolist faces a demand curve that is ___________________ elastic because there are ______________ substitutes for the product produced by the monopolist.
less; fewer
less; more
more; fewer
more; more
In: Economics
| Nova Company’s total overhead cost at various levels of activity are presented below: |
| Month | Machine-Hours | Total Overhead Cost |
| April | 50,000 | $184,400 |
| May | 40,000 | $160,000 |
| June | 60,000 | $208,800 |
| July | 70,000 | $233,200 |
|
Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine-hour level of activity is: |
| Utilities (variable) | $ | 52,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| Supervisory salaries (fixed) | 45,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Maintenance (mixed) | 63,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total overhead cost | $ | 160,000 | ||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
| Nova Company’s total overhead cost at various levels of activity are presented below: |
| Month | Machine-Hours | Total Overhead Cost |
| April | 48,000 | $196,100 |
| May | 38,000 | $170,600 |
| June | 58,000 | $221,600 |
| July | 68,000 | $247,100 |
|
Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is: |
| Utilities (variable) | $ | 57,000 |
| Supervisory salaries (fixed) | 54,000 | |
| Maintenance (mixed) | 59,600 | |
| Total overhead cost | $ | 170,600 |
|
Nova Company’s management wants to break down the maintenance cost into its variable and fixed cost elements. |
| Required: |
| 1. |
Estimate how much of the $247,100 of overhead cost in July was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $247,100 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.) |
| 2. |
Using the high-low method, estimate a cost formula for maintenance. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) |
| 3. |
Express the company’s total overhead cost in the linear equation form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable cost per unit" to 2 decimal places.) |
| 4. |
What total overhead cost would you expect to be incurred at an activity level of 43,000 machine-hours? (Do not round intermediate calculations.) |
In: Accounting
The owner of Gino’s Pizza restaurant chain believes that if a restaurant is located near a college campus, then there is a linear relationship between sales and the size of the student population. Suppose data are collected from a sample of n = 10 Gino’s Pizza restaurants located near college campuses with the following reported sample statistics:
|
X= Population (1000s) |
Y = Sales ($1000s) |
|
|
Sample Mean |
14 |
130 |
|
Sample Standard Deviation |
7.944 |
41.806 |
|
Sample Variance |
63.111 |
1747.778 |
|
Sample Covariance |
315.556 |
|
We want to find the equation of the least-squares regression line predicting quarterly pizza sales (y) from student population (x).
|
Source of Variation |
SS |
df |
MS |
F |
|
Regression |
||||
|
Error |
||||
|
TOTAL |
In: Statistics and Probability
One of the key questions decision makers must ask when considering whether to invest in a new technology is “what will the return on investment (ROI) be?” In other words, will this technology pay for itself, and when?
Consider an amusement park called FunTown. Funtown is a popular amusement park but because of long entrance lines to the park, yearly attendance has been flat (no increase or decrease) for the last 3 years. Unless something is done to alleviate the long entrance lines, attendance is not expected to increase for the next 3 years.
Funtown is considering implementing a handheld scanner system that can allow employees to walk around the front gates and accept credit card payment and print tickets on the spot. With the new scanner system, Funtown anticipates selling 2.4 million tickets in the next year (year 1), with a 4% increase (over the previous year) for the 2 years after that (years 2 and 3). Without the handheld scanner, Funtown anticipates selling 2.4 million tickets per year for the next 3 years.
The handheld scanner system is not without cost. Entrance to Funtown costs 35 dollars. For every ticket sold with the online scanner system, there is an expense of 6% of the ticket price.
It will take a while for the new system to catch on. Funtown estimates that 10% of year 1 attendance tickets will be sold using the online scanner. They also estimate that will grow to 20% and 30% in years 2 and 3 respectively.
Your assignment is to do a 3 year analysis of this proposal and determine if and when this scanner system will pay for itself.
Specifically, you are to calculate the net revenue of Funtown for each of the next 3 years, with, and without the new scanner system, and calculate the difference.
In: Finance
In: Economics
Give examples of co-branding and ingredient branding practices in the hotel and restaurant industry. What are the advantages and disadvantages of these practices?
In: Accounting
Offer suggestions on how revenue management can be used to actually enhance guest loyalty in the hotel and/or travel industry
In: Operations Management
Scenario: A local park is being converted into a COVID-19 testing site.
Describe the internal and external stakeholders, and their importance.
In: Operations Management
He Park Company owns 80% of the outstanding common stock of the Sea Company. Park is about to lease a machine with a 5-year life to the Sea Company. The lease would begin January 1, 20X3.
Required:
Explain the adjustments that will be required in the consolidation process if each of the following occurs.
In: Accounting