1.

Superior Paver sued homeowners Pamela and Mark for $14,350 it claimed was still owed as extra work incurred in installing concreate pavers in the driveway of their residence. Pamela and Mark had previously paid the $45,000 contract price, and they counterclaimed for $60,500 for the reasonable cost of making the contractor’s work conform to the contract. The evidence established that Superior did not install a proper base of 3” to 4” of crushed limestone before installing the pavers as required by the contract, which caused the pavers to move creating gaps between the pavers and causing water to flow into the garage. To correct the problem the pavers needed to be removed and the area excavated and replaced with a crushed limestone base before, again, installing the pavers. Superior claimed it had substantially performed the contract as their performance resulted in a fully usable driveway, and, the proper remedy, if any, was the reduction of the market value of Pamela and Mark’s property due to any defective performance. Superior further asserted that the cost of redoing the entire job would be economic waste.

The result?

2.

A franchisee owner (Owner) of a popular hotel chain was bound by their franchise agreement with Mega Hotel Inc (Mega). Part of Owner’s obligations included that Owner maintain their 60 room hotel to at least minimum quality assurance standards. Owner’s hotel failed five consecutive quality inspections over two years, with the inspector noting damaged guest rooms, burns in the bedding, and severely stained carpets. Mega canceled the franchise agreement. Owner sued Mega for wrongfully canceling the agreement (breach of contract).

Owner’s defense against Mega cancelling the franchise was the following. The bridge repairs on the road leading to the hotel had adversely affected the hotels ability to live up to the franchise agreement. Further, the repairs made it commercially impractical for Owner to live up to the franchise agreement. For reasons such as the inability of hotel staff to arrive on time and properly clean the rooms. Will Owner’s defense prevail?

Since its opening in 1977, Ocean Park was the only theme park in Hong Kong. The park, owned by the Hong Kong government, is a nonprofit organization that aims to provide visitors a unique experience in entertainment, education, and conservation. In the absence of competition, Ocean Park had existed without direction and focus. When Hong Kong officials signed an agreement to bring Disneyland to Hong Kong in 1999, it seemed as if it would be the end of Ocean Park. In this unequal competition, Ocean Park emerged the surprise winner. Quickly sprucing up its act, it has managed to outperform Disneyland and has emerged as the number one amusement park in Hong Kong .

How was Ocean Park able to turn a threat into an opportunity?

Ocean park made the decision not to compete head to head with Disneyland. Will this strategy always work when local companies face multinational giants? Explain.

How can Ocean Park further capitalize on Disneyland’s presence? (hint: check out how other parks surrounding Disney, such as Sea World and Universal Studios, survive and thrive in

Anaheim, California, and Orlando, Florida.)

How can Hong Kong Disneyland turn around its lackluster performance?

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds? (Round your answer to 3 decimal places.)

c. What would be the customer time in the system if a second window was opened with each server doing all three tasks? (Use closest λ/µ value . Do not round intermediate calculations. Round your answer to 3 decimal places.)

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 100 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers' parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don't get in until after the feature has started.)

a. What is the average customer time in the system?

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 20 seconds?

c. Would system waiting time be less than you found in(b) if a second window was opened with each server doing all three tasks.

Part C. is the one I need help with the most. Please explain in depth. Thank you!

The Bijou Theater shows vintage movies. Customers arrive at the theater line at the rate of 80 per hour. The ticket seller averages 36 seconds per customer, which includes placing validation stamps on customers’ parking lot receipts and punching their frequent watcher cards. (Because of these added services, many customers don’t get in until after the feature has started.) (Use the Excel spreadsheet Queue Models.)

a. What is the average customer time in the system? (Round your answer to 2 decimal places.)

b. What would be the effect on customer time in the system of having a second ticket taker doing nothing but validations and card punching, thereby cutting the average service time to 25 seconds? (Round your answer to 3 decimal places.)

Average time in system ________ minutes

c. What would be the customer time in the system if instead of the change in Part b, a second window was opened with each server doing all three tasks? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

d. Would system waiting time which is obtained in part (c) be less than you found in (b)?

• Yes

• No

Is the product or service of the hotel industry standardized or differentiated? Explain. Compared to other industries, is it difficult or easy to enter the hotel industry? Explain. Are there examples of nonprice competition in the hotel industry? Illustrate. Based on the above, would you say that the hotel industry is monopoly, oligopoly, monopolistic competition or perfect competition? Explain.

Listed below are binary systems for VLE. Which can be approximately modeled using Raoult’s Law? Clearly state your reasons for or against the use of Raoult’s Law. Table B.1 (Appendix B) may be useful. (a) Argon/hexane at 200K. (b) o-Xylene/p-Xylene at 413K. (c) n-butane/i-butane at 30 bar. (d) CO2/water at 1 bar.

t beginning of this year, XYZ Company has a machine worth 1000k, cash 30k, account receivable 200k, inventory 100k, account payable 50k, and notes payable 80k. During this year, XYZ had sold 75k of inventory, which brought in 120k in revenue (with half cash and half credit). In addition, the company also paid down 37.5% of the notes payable. What is the change of NWC this year?

1. In the following market,

1. Fill the column for marginal product. Can you explain diminishing marginal product based on those numbers?
2. A worker cost $45 a day, and the firm has fixed cost of $80. Use this information to fill in the column for total cost.
3. Fill in the column for average total cost.
4. Fill the column for the marginal cost.
5. Compare the column for average total cost and the column for marginal cost. Explain the relationship.

Question 37

1. A monopolist maximizes profits by

   	a.	producing an output level where marginal revenue equals marginal cost.
   	b.	charging a price equal to marginal revenue and marginal cost.
   	c.	charging a price where marginal cost equals average total cost.
   	d.	Both a and b are correct.

Question 38

1. A monopoly is an inefficient way to produce a product because

   	a.	it faces a downward-sloping demand curve.
   	b.	it can earn both short-run and long-run profits.
   	c.	the cost to the monopolist of producing one more unit exceeds the value of that unit to potential buyers.
   	d.	it produces a smaller level of output than would be produced in a competitive market.

Question 39

1. A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if it

   	a.	can prevent children from buying the lower-priced tickets and selling them to adults.
   	b.	has some degree of monopoly pricing power.
   	c.	can easily distinguish between the two groups of customers.
   	d.	All of the above are correct.