suppose that the inverse demand function, marginal revenue, marginal cost and total cost for a gizmo product produced by a monopolist are as follows

p=100 -2Q

MR= 100-4Q

MC=2

TC=10+2Q

a. Find the monopolist's profit maximizing output and price.

b. Calculate the monopolist's profit/loss ,if any

c. What is the Lerner Index for this industry

17. Claim: The average cost to repair washing machine A is less than the average cost to repair washing machine B. Test at α = 0.1

Data: A sample of 10 washing machine A’s have an average repair cost of $208 and a standard deviation of $25. A sample of 15 washing machine B’s have an average repair cost of $221 and a standard deviation of $29.

Assume that the population standard deviations for repair costs are the same for each

(a) Are these data statistically significant evidence to support the claim?

(b) Are these data statistically significant evidence to refute the claim?

A company produces products at a cost of $38 each. Defective products cost an additional $15 each to repair. The probability of no defective products is 80%. The probability of 5% defective products is 20%. What is the expected cost of producing 500 products? $

When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because

An incomplete cost of goods manufactured schedule is presented below.

Complete the cost of goods manufactured schedule for Monty Company.

Cost of Quality Analysis

The ABC Company has collected the following cost data for the year:  

          Receiving Inspection $ 15,232

Production Scrap $   32,150

Rejected Products $ 6,200

  Product Design $ 25,422

Customer Adjustment Credit $ 85,654

Online Inspection $ 17,248

Quality Team Meeting $ 7,540

Downgrading Products $ 1,125,328

Customer Need survey $ 3,250

Final test $         25,758

Prototyping $ 136,802  

1. Organize these costs in COQ categories and put any non-QOC data in the NQ category.
2. Compute the ratio of prevention and appraisal costs to failure costs
3. Recommend strategies for reducing the Total Quality Cost.

In a lease-versus-buy analysis, the correct comparison is the cost of lease financing versus the cost of the alternative financing method to be used if the asset is not leased.

A production plant cost-control engineer is responsible for cost reduction. One of the costly items in his plant is the amount of water used by the production facilities each month. He decided to investigate water usage by collecting seventeen observations on his plant's water usage and other variables.

Variable               Description

Temperature     Average monthly temperate (F)

Production          Amount of production (M pounds)

Days                      Number of plant operating days in the month

Persons                Number of persons on the monthly plant payroll

Water                   Monthly water usage (gallons)

i. Create the Scatter Plot graph between “water” and “production”

ii. Use the appropriate routine of Data Analysis in MS Excel or any other statistical software in order to estimate the correlation matrix of all variables

iii. Compute 95% confidence interval for the values of the correlation coefficient between and determine which ones are statistically significant”