InterBearing is a major manufacturer of Bearings. In the initial example, this producer of bearings is a monopoly. The Total Cost Function is: TC = 1000 + 8Q & the Demand Function is Q = 21 – P_Q

1. What is the CS in the Perfectly Competitive Model?
2. What is the Deadweight Loss in the Monopoly Model?
3. If the Government added a $13 tax to each unit sold by the Monopolist, how much would CS Fall? How Much Tax Revenue would be raised?
4. If the Government added a $13 tax to each unit sold in a Competitive Market, how much would CS Fall? How much Tax Revenue would be raised?

Please make a comparative analysis in 250 words for both companies over three years. Make sure the analysis goes into reason for the changes and sounds professional.

2. The engineering team at Manuel’s Manufacturing Inc. is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to increase revenue $125,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $95,000 per year. Manuel’s uses a 4-year planning horizon and a 10% per year MARR.

a. What is the discounted payback period of each investment (do linear interpolation to answer)?

b. Based on DPBP, which ERP system should Manuel purchase?

A community hospital is planning to expand its services to three new service lines in the medical diagnostic categories (MDC-2, MDC-19, and MDC-21). Five common resources must be allocated among these three new service lines according to which will bring the most revenue. The resources are LOS, nursing hours, radiology procedures, laboratory procedures, and operating rooms. The health care manager in charge of this expansion project obtained the average consumption patterns of these resources for each MDC from other peer institutions, and estimated the resources that can be made available (per year) for the new service lines as listed below. Based on the available information the average revenues from MDC - 2, MDC - 19, and MDC - 21 are $8,885, $ 10,143, and $12,711, respectively.

1. What are the decision variables?
2. What are constrains on manager's decision?
3. What is the Objective Function?
4. Using Excel Solver to solve the problem and answer the following questions:

1. Which service(s) should be offered to get the most revenue?

1. What are the optimal volumes for the service(s) to be offered?

1. What is the total expected revenue from the new services?

1. Looking at the Sensitivity report for Solver results, answer the following questions:

1.) Which resources should be expanded and,

2.) How much additional revenue can be expected if resources are selected for expansion without violating the current solution?

According to the law of demand, if price increases, quantity demanded of a good or service will decrease or vice versa. Price elasticity of demand tells us how much quantity demanded will decrease when price increases or how much quantity demanded will increase if price decreases.On the other hand, according to the law of supply, if the price increases, quantity supplied of a good or service will increase. Similarly, if price decreases, quantity supplied will decrease. The degree of sensitivity (responsiveness) of production/supply to a change in price is measured by the concept of price elasticity of supply.Total revenue is calculated as the quantity of a good or service sold multiplied by its market price. Thus, it is a measure of how much money a company makes from selling its product. The core objective of a firm is maximizing profit. One of the ways to maximize profit is increasing total revenue. The firm can increase its total revenue by selling more items or by raising the price. Among others, this depends on the nature of the price elasticity of demand. Moreover, the length of time is an important factor in determining price elasticity of demand and supply.

Explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain your responses using empirical examples, formulas, and graphs.

● Is the price elasticity of demand or supply more elastic over a shorter or a longer period of time? Why? Give examples.

● What are the impacts of government and market imperfections (failures) on the price elasticities of demand and supply?

please list any references used

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.30 per car washed.

The actual operating results for August appear below.

Required:

Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

A uniform pricing monopolist has the following cost function and faces the following demand curve for its product:

C(y) = 20y

P(y) = 100 - y

(a) Find the monopolist quantity, price, and deadweight loss relative to the perfectly competitive outcome. Draw a diagram labeling the perfectly competitive outcome as A, and the monopolist outcome as B. Be sure to include the marginal cost and marginal revenue curves in your diagram.

(b) There are two possible scenarios for the monopolist:

i. The government sets a price ceiling of $40/unit in which case the monopolist does not invest in any R&D because it is wary of future government regulation.

ii. There is no government regulation, so then the monopolist invests in R&D which then changes the cost function so that MC = 0. Which scenario has higher welfare (ignore the cost of R&D for producer surplus)? Which scenario do the consumers prefer? Explain.

(c) For plan (i), the marginal revenue curve features a discontinuity at some Q. Explain intuitively why the marginal revenue curve has this discontinuity.

(d) Go back to your solution in part a. Suppose now the government allows one other identical firm to enter this market and firms compete on quantity. Let x equal to value of marginal revenue at the monopolist output when there is only one firm. Claim: If the two firms each produce half the monopoly quantity, then MR = x for both firms at the current level of output. Is this claim true, false, or uncertain? Explain your reasoning.

1. Consider the following table that provides information for a firm’s short-run production function and its product demand, given by the column labeled D1.

Based on that information, calculate Total Revenue (TR), Marginal Revenue Product (MRP), Marginal Product of Labor (MP) and Value of the Marginal Product (VMP), then answer the following questions:

1. Assume that the labor market is perfectly competitive. If the wage rate is $100, how many workers should the firm hire in order to achieve maximum profit?

2. Assume that the labor market is perfectly competitive. If the wage rate rises from $100 to $135, how many workers will the firm fire?

3. Based on your previous answers, what is the wage elasticity of this firm’s labor demand when wage increases from $100 to $135?

4. Assume that the labor market is perfectly competitive. Suppose the firm’s product demand is now given by the column labeled D₂. Calculate Total Revenue (TR), Marginal Revenue Product (MRP), Marginal Product of Labor (MP) and Value of the Marginal Product (VMP). If the wage rate is $100, how many workers should the firm hire in order to achieve maximum profit?

1:A brand of dress shoes was put on sale for 20% off. This led to an increase of sale by 15%. The price elasticity of demand for this product is

2:

The concept of cross-price elasticity is used to examine the responsiveness of demand

3:

When the cross-price elasticity EPX = 3

4:

With elastic demand, a price increase will

5:

A direct relation between the price of one product and the demand for another holds for all

6:

According to the law of diminishing marginal utility

If demand is price inelastic, a decrease in price will cause a

     a. larger percentage increase in quantity demanded than the percentage decrease in price,

         thereby decreasing total revenue.

     b. smaller percentage decrease in quantity demanded than the percentage decrease in price,

         thereby decreasing total revenue.

     c. smaller percentage decrease in quantity demanded than the percentage decrease in price,

         thereby increasing total revenue.

     d. larger percentage decrease in quantity demanded than the percentage decrease in price,

         thereby decreasing total revenue.

      e.none of these choices are correct

.          Suppose that there is a recession and you observe that the market price of new cars decreases and

             the market price of used cars increases. This observation is consistent with:

1. new cars being a normal good
2. used cars being an inferior good
3. new cars being an inferior good and used cars being a normal good
4. new cars being a normal good and used cars being an inferior good

8.         Suppose that builders of new single family homes and prospective first time buyers of single

            family homes believe that housing prices will fall in the future. This would lead to:

1. market price to rise and quantity to be ambiguous
2. market price to fall and quantity to be ambiguous
3. market quantity to fall and price to be ambiguous
4. market quantity to rise and price to be ambiguous

.       The demand for good X will be more elastic

a.         the larger the number of substitutes

b.         the larger percentage good X takes in the consumer's budget.

c.         the longer the time period consumers have to adjust to a change in the price of good X

e.         all of these answers are correct