Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.35 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |||
| Cleaning carpets | Square feet cleaned (00s) | 7,500 | hundred square feet | ||
| Travel to jobs | Miles driven | 81,500 | miles | ||
| Job support | Number of jobs | 1,700 | jobs | ||
| Other (costs of idle
capacity and organization-sustaining costs) |
None | Not applicable | |||
The total cost of operating the company for the year is
$348,000, which includes the following costs:
| Wages | $ | 135,000 | |
| Cleaning supplies | 32,000 | ||
| Cleaning equipment depreciation | 11,000 | ||
| Vehicle expenses | 30,000 | ||
| Office expenses | 58,000 | ||
| President’s compensation | 82,000 | ||
| Total cost | $ | 348,000 | |
Resource consumption is distributed across the activities as
follows:
Distribution of Resource Consumption Across Activities
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | |||||||||||||||||
| Wages | 72 | % | 14 | % | 0 | % | 14 | % | 100 | % | |||||||||||
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % | |||||||||||
| Cleaning equipment depreciation | 73 | % | 0 | % | 0 | % | 27 | % | 100 | % | |||||||||||
| Vehicle expenses | 0 | % | 78 | % | 0 | % | 22 | % | 100 | % | |||||||||||
| Office expenses | 0 | % | 0 | % | 63 | % | 37 | % | 100 | % | |||||||||||
| President’s compensation | 0 | % | 0 | % | 30 | % | 70 | % | 100 | % | |||||||||||
Job support consists of receiving calls from potential customers at
the home office, scheduling
jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
3. The company recently completed a 4 hundred square foot carpet-cleaning job at the Flying N ranch—a 58.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.)
4. The revenue from the Flying N ranch was $93.40 (4 hundred square feet at $23.35 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.75 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 13,500 | hundred square feet |
| Travel to jobs | Miles driven | 142,000 | miles |
| Job support | Number of jobs | 1,600 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $361,000 which includes the following costs:
| Wages | $ | 137,000 |
| Cleaning supplies | 26,000 | |
| Cleaning equipment depreciation | 12,000 | |
| Vehicle expenses | 40,000 | |
| Office expenses | 68,000 | |
| President’s compensation | 78,000 | |
| Total cost | $ | 361,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 76 | % | 14 | % | 0 | % | 10 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 68 | % | 0 | % | 0 | % | 32 | % | 100 | % |
| Vehicle expenses | 0 | % | 79 | % | 0 | % | 21 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 56 | % | 44 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 26 | % | 74 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 60-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)
4. The revenue from the Flying N Ranch was $136.50 (600 square feet @ $22.75 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.)
In: Accounting
Problem 7-20 Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5]
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.75 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 9,500 | hundred square feet |
| Travel to jobs | Miles driven | 291,000 | miles |
| Job support | Number of jobs | 1,900 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $368,000 which includes the following costs:
| Wages | $ | 149,000 |
| Cleaning supplies | 21,000 | |
| Cleaning equipment depreciation | 16,000 | |
| Vehicle expenses | 31,000 | |
| Office expenses | 70,000 | |
| President’s compensation | 81,000 | |
| Total cost | $ | 368,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 80 | % | 12 | % | 0 | % | 8 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 68 | % | 0 | % | 0 | % | 32 | % | 100 | % |
| Vehicle expenses | 0 | % | 76 | % | 0 | % | 24 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 56 | % | 44 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 27 | % | 73 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 55-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $142.50 (600 square feet @ $23.75 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $28 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |||
| Cleaning carpets | Square feet cleaned (00s) | 20,000 | hundred square feet | ||
| Travel to jobs | Miles driven | 60,000 | miles | ||
| Job support | Number of jobs | 2,000 | jobs | ||
| Other (costs of idle
capacity and organization-sustaining costs) |
None | Not applicable | |||
The total cost of operating the company for the year is $430,000, which includes the following costs:
| Wages | $ | 150,000 | |
| Cleaning supplies | 40,000 | ||
| Cleaning equipment depreciation | 20,000 | ||
| Vehicle expenses | 80,000 | ||
| Office expenses | 60,000 | ||
| President’s compensation | 80,000 | ||
| Total cost | $ | 430,000 | |
Resource consumption is distributed across the activities as follows:
Distribution of Resource Consumption Across Activities
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | |||||||||||||||||
| Wages | 70 | % | 20 | % | 0 | % | 10 | % | 100 | % | |||||||||||
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % | |||||||||||
| Cleaning equipment depreciation | 80 | % | 0 | % | 0 | % | 20 | % | 100 | % | |||||||||||
| Vehicle expenses | 0 | % | 60 | % | 0 | % | 40 | % | 100 | % | |||||||||||
| Office expenses | 0 | % | 0 | % | 45 | % | 55 | % | 100 | % | |||||||||||
| President’s compensation | 0 | % | 0 | % | 40 | % | 60 | % | 100 | % | |||||||||||
Job support consists of receiving calls from potential customers
at the home office, scheduling jobs, billing, resolving issues, and
so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
3. The company recently completed a 5 hundred square foot carpet-cleaning job at the Flying N ranch—a 75-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)
4. The revenue from the Flying N ranch was $140 (5 hundred square feet at $28 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)
In: Accounting
|
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.85 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below: |
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 10,500 | hundred square feet |
| Travel to jobs | Miles driven | 228,000 | miles |
| Job support | Number of jobs | 2,000 | jobs |
| Other (costs of idle capacity and organization-sustaining costs) |
None | Not applicable | |
|
The total cost of operating the company for the year is $361,000, which includes the following costs: |
| Wages | $ | 147,000 |
| Cleaning supplies | 33,000 | |
| Cleaning equipment depreciation | 9,000 | |
| Vehicle expenses | 30,000 | |
| Office expenses | 67,000 | |
| President’s compensation | 75,000 | |
| Total cost | $ | 361,000 |
|
Resource consumption is distributed across the activities as follows: |
|
Distribution of Resource Consumption Across Activities |
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 75 | % | 12 | % | 0 | % | 13 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 72 | % | 0 | % | 0 | % | 28 | % | 100 | % |
| Vehicle expenses | 0 | % | 75 | % | 0 | % | 25 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 56 | % | 44 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 25 | % | 75 | % | 100 | % |
| Job support consists of receiving calls from potential
customers at the home office, scheduling jobs, billing, resolving issues, and so on. |
| Required: |
| 1. |
Prepare the first-stage allocation of costs to the activity cost pools. |
| 2. | Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) |
| 3. |
The company recently completed a 6 hundred square foot carpet-cleaning job at the Flying N ranch—a 54.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.) |
| 4. |
The revenue from the Flying N ranch was $137.10 (6 hundred square feet at $22.85 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.) |
In: Finance
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |||
| Cleaning carpets | Square feet cleaned (00s) | 14,500 | hundred square feet | ||
| Travel to jobs | Miles driven | 172,000 | miles | ||
| Job support | Number of jobs | 1,900 | jobs | ||
| Other (costs of idle
capacity and organization-sustaining costs) |
None | Not applicable | |||
The total cost of operating the company for the year is
$353,000, which includes the following costs:
| Wages | $ | 136,000 | |
| Cleaning supplies | 32,000 | ||
| Cleaning equipment depreciation | 12,000 | ||
| Vehicle expenses | 28,000 | ||
| Office expenses | 63,000 | ||
| President’s compensation | 82,000 | ||
| Total cost | $ | 353,000 | |
Resource consumption is distributed across the activities as
follows:
Distribution of Resource Consumption Across Activities
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | |||||||||||||||||
| Wages | 72 | % | 11 | % | 0 | % | 17 | % | 100 | % | |||||||||||
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % | |||||||||||
| Cleaning equipment depreciation | 73 | % | 0 | % | 0 | % | 27 | % | 100 | % | |||||||||||
| Vehicle expenses | 0 | % | 80 | % | 0 | % | 20 | % | 100 | % | |||||||||||
| Office expenses | 0 | % | 0 | % | 59 | % | 41 | % | 100 | % | |||||||||||
| President’s compensation | 0 | % | 0 | % | 31 | % | 69 | % | 100 | % | |||||||||||
Job support consists of receiving calls from potential customers at
the home office, scheduling
jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
3. The company recently completed a 6 hundred square foot carpet-cleaning job at the Flying N ranch—a 51.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.)
4. The revenue from the Flying N ranch was $135.00 (6 hundred square feet at $22.50 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.25 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 12,000 | hundred square feet |
| Travel to jobs | Miles driven | 328,500 | miles |
| Job support | Number of jobs | 2,000 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $349,000 which includes the following costs:
| Wages | $ | 138,000 |
| Cleaning supplies | 27,000 | |
| Cleaning equipment depreciation | 7,000 | |
| Vehicle expenses | 38,000 | |
| Office expenses | 61,000 | |
| President’s compensation | 78,000 | |
| Total cost | $ | 349,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 80 | % | 15 | % | 0 | % | 5 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 70 | % | 0 | % | 0 | % | 30 | % | 100 | % |
| Vehicle expenses | 0 | % | 82 | % | 0 | % | 18 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 59 | % | 41 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 27 | % | 73 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
|
2. Compute the activity rates for the activity cost pools
|
3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch—a 59-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $186.00 (800 square feet @ $23.25 per hundred square feet). Calculate the customer margin earned on this job.
In: Accounting
Using Bash script,
1. Print the multiplication table upto 10 rows. Ask the user to enter a number. say user enters 10, your output should be :
[srivatss@athena shell]> ./mult.sh
I will be printing the multiplication table
Please enter a number
10
1 x 10 = 10
2 x 10 = 20
3 x 10 = 30
4 x 10 = 40
5 x 10 = 50
6 x 10 = 60
7 x 10 = 70
8 x 10 = 80
9 x 10 = 90
10 x 10 = 100
[ 5 points ]
2. Create a Simple Calculator [ 20 points , 5 points for each operator]
Ask the user for the first operand, second operand and the operator. You output the result to the user based on the operator. Here is the sample output
[srivatss@athena shell]> ./calc.sh
Welcome to my Simple calculator
Please enter the first operand
2
Please enter the second operand
3
Please enter the operator
+
2 + 3 = 5
[srivatss@athena shell]> ./calc.sh
Welcome to my calculator
Please enter the first operand
4
Please enter the second operand
2
Please enter the operator
-
4 - 2 = 2
[srivatss@athena shell]> ./calc.sh
Welcome to my calculator
Please enter the first operand
4
Please enter the second operand
5
Please enter the operator
*
4 * 5 = 20
[srivatss@athena shell]> ./calc.sh
Welcome to my calculator
Please enter the first operand
6
Please enter the second operand
3
Please enter the operator
/
6 / 3 = 2
3. Using RANDOM function and touch command , create a file with prefix =BatchJob followed by the random number.
For instance, I ran my script, it created a file with random number 10598.
[srivatss@athena shell]> ./cmds.sh
BatchJob10598
[ 5 points ]
In: Computer Science
C++
Download Lab10.cpp . In this file, the definition of the class personType has given. Think of the personType as the base class.
Lab10.cpp is provided below:
#include <iostream>
#include <string>
using namespace std;
// Base class personType
class personType
{
public:
void print()const;
//Function to output the first name and last name
//in the form firstName lastName.
void setName(string first, string last);
string getFirstName()const;
string getLastName()const;
personType(string first = "", string last = "");
//Constructor
//Sets firstName and lastName according to the parameters.
//The default values of the parameters are null strings.
//Postcondition: firstName = first; lastName = last
private:
string firstName; //variable to store the first name
string lastName; //variable to store the last name
};
void personType::print() const
{
cout << "Person FirstName="<<firstName << "
LastName=" << lastName<< endl;
}
void personType::setName(string first, string last)
{
firstName = first;
lastName = last;
}
string personType::getFirstName() const
{
return firstName;
}
string personType::getLastName() const
{
return lastName;
}
//constructor
personType::personType(string first, string last)
{
firstName = first;
lastName = last;
}
// --------------------Start your code from here
//--------------------driver program
int main()
{
personType person1("Lisa", "Regan");
doctorType doctor1("Sarah", "Conner", "Dentist");
patientType patient1("Sam", "Fire",200,100,1916);
billType b1;
b1.setDoctor(doctor1);
b1.setPatient(patient1);
b1.setCharge(250.66);
cout << "<personType> Printing...\n";
person1.print();
cout << endl;
cout << "<doctorType> Printing...\n";
doctor1.print();
cout << endl;
cout << "<patientType> Printing...\n";
patient1.print();
cout << endl;
cout << "<billType> Printing...\n";
b1.print();
cout << endl;
return 0;
}
Question:
● Derive the class doctorType, inherited from the class
personType, with an additional class member variable member to
store a doctor’s specialty(string type) Then, implement following
class member function prototypes.
doctorType(string,string,string);//Firstname Lastname
Specialty
doctorType();//Default constructor
void setSpecialty(string);//Set doctor specialty
string getSpecialty()const;// Get doctor specialty
void print()const;//Display doctor information the same as given
output format
● Derive the class patientType, inherited from the class
personType, with additional class
member variables to store a patient’s id , age , and dob (Date of
birth)(All are integer ).
Then, implement following class member function prototypes.
patientType(string, string, int, int, int);//Firstname Lastname id
age dob
patientType();Default constructor
void setId(int);//Set patient id
void setage(int);//Set patient age
void setDob(int);//Set patient DOB
int getId()const;//Get patient id
int getage()const;//Get patient
int getDob()const;//Get patient DOB
void print()const; //Display patient information the same as given
output format
● Design a class billType, with class member variables to store
a patient’s information
( patientType ), the patient’s doctor’s information ( doctorType ),
and the hospital
charges( double ). Then, implement following class member function
prototypes.
billType(doctorType &, patientType &); // Constructor
void setCharge(double);//Set hospital charges
double getCharge()const;//Get hospital charges
void print()const;//Display a bill information the same as given
output format
Use the provided driver program to test your program. You should get the same output
Output:
<perspnType> Printing...
Person FirstName=Lisa LastName=Regan
<doctorType> Printing...
Doctor FirstName=Sarah LastName=Conner Specialty=Dentist
<patientType> Printing...
Patient FirstName=Sam LastName=Fire Id=200 Age=100 DOB=1916
<billType> Printing..
Patient FirstName=Sam LastName=Fire Id=200 Age=100 DOB=1916
Patient's doctor FirstName=Sarah LastName=Conner Specialty=Dentist
Hospital charge=250.66$
Press any key to continue...
In: Computer Science
Suppose that the market demand for organic specialty rose hip jelly is given by:
? = 500 − 5?
There are only two firms, A and B, producing this product, each at a constant marginal and average total cost of $50.
Find the following for both firms under a Stackelberg market structure with A being the first mover (B reacts to A since A moves first).
A.) A’s Quantity [7]
B.) B’s Quantity [7]
C.) Industry Quantity [5]
D.) Price (this jelly is expensive! That must be a case of 20….) [7]
E.) A’s Profit [5]
F. ) B’s Profit [5]
G.) Industry Profit [5]
H. ) Order expected industry profits from greatest to least: [8]
a. Cournot
b. Collusive Monopoly
c. Bertrand
I. ) Questions regarding Bertrand market structure: [6]
a. What type of market structure does Bertrand resemble? This is in slides.
Hint: it probably the first market structure we talked about.
b. How much are profits under Bertrand?
c. What are firms choosing under Bertrand Market structure (Q or P)? How does this result in incentives that lead to the answer to part b?
In: Economics