Is the percentage average room rate increase from May to August affected by the number of stars of a hotel? In order to answer this question you are asked to use one way analysis of variance. 1.1 Compute the percentage Average Room Rate Increase from May to August for each hotel in the sample, rounding up to the second decimal. Call this variable PCT_ARR_INCREASE. 1.2 State the null and alternative hypotheses.

We have 3 columns ARR_MAY(AVERAGE ROOM RATE MAY) ,ARR_AUG(AVERAGE ROOM RATE AUG) AND STARS

STARS   ARR_MAY   ARR_AUG
5   95   160
5   94   173
5   81   174
5   131   225
5   90   195
5   71   136
5   85   114
4   70   159
4   64   109
4   68   148
4   64   132
4   59   128
4   25   63
3   76   130
3   40   60
3   60   70
3   51   65
3   65   90
2   45   55
1   35   90
4   22   51
4   70   100
3   60   120
3   40   60
3   48   55
2   52   60
2   53   104
2   80   110
2   40   50
1   59   128
4   90   105
3   94   104
2   29   53
2   26   44
1   42   54
1   30   35
2   47   50
1   31   49
1   35   45
1   40   55
1   40   55
1   35   40
3   40   55
4   57   97
2   35   40
5   113   235
5   61   132
5   112   240
5   100   130
4   87   152
4   112   211
4   95   160
4   47   102
4   77   178
4   48   91
3   60   104
3   25   33
5   68   140
4   55   75
3   38   75
3   45   70
3   45   90
5   100   180
4   180   250
3   38   84
3   99   218
3   45   95
2   28   40
2   30   55
1   16   35
3   40   70
2   60   100
1   16   20
2   22   41
2   55   100
1   40   100
1   80   120
1   80   120
1   18   35
3   80   100
2   30   45
1   40   65
1   30   50
1   25   70
1   30   35
4   215   265
4   133   218
2   35   95
2   100   150
2   70   100
5   60   90
5   119   211
5   93   162
5   81   138
5   44   128
5   100   187
5   98   183
5   100   150
5   102   211
5   103   160
4   40   56
4   69   123
4   112   213
4   80   124
3   53   91
4   73   134
4   94   120
4   70   100
3   40   75
3   50   90
3   70   120
3   80   95
3   85   120
3   50   80
3   30   68
3   30   100
2   32   55
2   50   90
2   70   120
2   30   73
2   94   120
4   100   180
2   70   120
2   19   45
2   35   70
2   50   80
1   25   45
1   30   50
2   55   80
3   95   120
1   25   31
1   16   40
1   16   40
1   19   23
1   30   40

PLEASE ANSWER QUESTION 1.1 AND 1.2 THANKS IN ADVANCE

What's the current situation? "Extreme rain fall" events in Brazil have been on the rise since the 1980s. In Guarujá a coastal town 25 miles from Soa Paulo, 18 people were killed in a single monsoon rain. The rise of global temperatures worldwide is likely to produce more extreme events for the area. Pirelli Tires a well-known performance tire manufacturer has been hit especially hard. In 2003, Pirelli built a 345,000 square foot manufacturing plant in region with an output of 2,500 tires per day. The plant employs 300 people with the option to expand its employment with an additional 350. Pirelli's operation in Bauru sustained heavy damage and will have to undergo substantial repair and additional costs to continue to produce there. The plant helped stabilize the economy of the city, increased property value, and attracted numerous local businesses. In order for the company to protect its $120 million dollar investment it must repair its facility and roadways for employees to travel in safety as well as additional insurance costs The estimated cost for facility repairs due to heavy rain events is $30M, and the insurance policy will only cover $10M. The insurance payout of $10M will not be used if the Tire manufacturer elects not to repair the current facility. Pirelli Tires is now faced with the difficult task of deciding whether to repair its existing facility in Bauru or move its operation permanently to an abandoned manufacturing space located in Campinas. Campinas is being considered as a potential option for the following reasons: 1) Facilities and infrastructure are already available from a previous tire operation making the environment ideal. 2) Adequate parking is available for over 900 employees. 3) Pirelli's brand partnership with local business make the area more attractive 4) The area has significantly better work talent. The abandoned manufacturing space, however, must undergo major renovation to bring it up to current operational standards. Existing areas must be reconfigured, and additional square footage must be added to increase the space for tire production. The tire curing press space of 20,000 square feet must be increased to 30,000 square feet to adequately match the output of Bauru. Other required construction will include management office areas overlooking the production floor (1,600 square feet), human resource office areas (2,400 square feet), and an expanded dining and break space for employees (2,410 square feet). Two functional features of the current Bauru facility must also be included in the renovation: an 800 square foot security gate entrance and guard office. A local contractor estimated that the latter would cost $30,000 to install. And finally, the restrooms will be remodeled, and an additional hourly wage clock punch station will be installed at a cost of $36,000 and $4,500, respectively. The average cost of construction and finishing (including all fixtures and fittings) is currently estimated at 7,520 Brazilian Reals per square foot. The US based architectural firm retained for the project will charge a standard fee of $550,000 regardless of which option is selected. What are you supposed to do? You are required to evaluate the feasibility of both options (i.e. stay or move) and provide a recommendation, via email, to Dana Helms, COO, of Pirelli Tire. You may assume that both projects will take the same amount of time to complete. Apply the appropriate business writing standards for content, style, and organization in your email. Currency Conversion Rate: 1 USD = 5.71 BRL

1. Determine the bottomline message 2. Provide a suitable subject line 3. Ensure that your content is concise 4. Employ a suitable visual representation to display quantitative information 5. Employ parallel form Grading Rubric A suitable subject line 2 An appropriate bottomline 2 A list of supporting qualitative data in parallel form 4 An appropriate visual representation of comparative quantitative data 5 A call to action 1 Introduction to data 2 Suitable wrap-up statement 1 Overall organization, form, and grammar 3 TOTAL POINTS 20

Write an email to Dana Helms, COO, of Pirelli Tire and Have a Table showing Data of the Figures for both projects.

ames Corporation is planning to issue bonds with a face value of $501,500 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)

Required:

Compute the issue (sale) price on January 1 of this year for each of the following independent cases:

a. Case A: Market interest rate (annual): 4 percent.

b. Case B: Market interest rate (annual): 6 percent.

c. Case C: Market interest rate (annual): 8.5 percent.

Park Corporation is planning to issue bonds with a face value of $790,000 and a coupon rate of 7.5 percent. The bonds mature in 6 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)  

Required:

1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the journal entry to record the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. What bond payable amount will Park report on its June 30 balance sheet? (Enter all amounts with a positive sign.)

Several years ago, Walters Company issued bonds with a face value of $613,000 at par. As a result of declining interest rates, the company has decided to call the bond at a call premium of 10 percent over par. Record the retirement of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On January 1 of this year, Clearwater Corporation sold bonds with a face value of $761,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually every December 31. Clearwater uses the straight-line amortization method and also uses a discount account. Assume an annual market rate of interest of 7 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)

Required:

1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the journal entry to record the interest payment on December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. How will the bonds be reported on Clearwater's December 31 Balance Sheet?

[The following information applies to the questions displayed below.]

Claire Corporation is planning to issue bonds with a face value of $210,000 and a coupon rate of 10 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)  

8.

value:
10.00 points

Required information

Required:

1. Provide the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)

References

eBook & Resources

General JournalDifficulty: 2 MediumLearning Objective: 10-04 Report bonds payable and interest expense for bond securities issued at a discount.

Check my work

9.

value:
10.00 points

Required information

2. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)

Serotta Corporation is planning to issue bonds with a face value of $380,000 and a coupon rate of 12 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

11.

value:
10.00 points

Required information

1. Provide the journal entry to record the issuance of the bonds January 1.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)

References

eBook & Resources

General jounralDifficulty: 2 MediumLearning Objective: 10-05 Report bonds payable and interest expense for bond securities issued at a premium.

Check my work

12.

value:
10.00 points

Required information

2. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.)

References

eBook & Resources

General jounralDifficulty: 2 MediumLearning Objective: 10-05 Report bonds payable and interest expense for bond securities issued at a premium.

Check my work

13.

value:
10.00 points

Required information

3. What bonds payable amount will Serotta report on this year's December 31 balance sheet? (Round your final answers to nearest whole dollar amount.)

The costs below all relate to Sounds Good, a company based in Alberta that manufactures high-end audio equipment such as speakers, receivers, CD players, turntables, and home theatre systems. The company owns all of the manufacturing facilities (building and equipment) but rents the space used by the non-manufacturing employees (accounting, marketing, sales, human resources).

Required: For each cost, indicate whether it would most likely be classified as a direct labour, direct material, manufacturing overhead, marketing and selling, or administrative cost.(Select all that apply.)

1. Depreciation, taxes, and insurance on the manufacturing facilities.

2. Rent on the office space used by the non-manufacturing staff.

3. Salaries paid to the employees who produce the audio equipment.

4. Cost of the glue used to fasten the company’s logo to the grill used on all of its speakers.

5. The cost of online advertising.

6. Salaries paid to the accounting employees.

7. Salary paid to the production manager who supervises the manufacturing activities for all products.

8. Cost of the plastic used for turntable dust covers.

9. Bonuses paid to sales staff for meeting their monthly sales goals.

10. Salary paid to the manager of the human resources department.

home / study / business / operations management / operations management questions and answers / big bend medical center

QUESTION: If the true cost concept is applied, what would be the allocation in the 21st year, after the mortgage had been paid off?

Big Bend Medical Center is a full-service, not-for-profit acute care hospital with 325 beds. The bulk of the hospital’s facilities are devoted to inpatient care and emergency services. However, a 100,000 square-foot section of the hospital complex is devoted to outpatient services. Currently, this space has two primary uses. About 80 percent of the space is used by the Outpatient Clinic, which handles all routine outpatient services offered by the hospital. The remaining 20 percent is used by the Dialysis Center. The Dialysis Center performs hemodialysis and peritoneal dialysis, which are alternative processes for removing wastes and excess water from the blood for patients with end-stage renal (kidney) disease. In hemodialysis, blood is pumped from the patient’s arm through a shunt into a dialysis machine, which uses a cleansing solution and an artificial membrane to perform the functions of a healthy kidney. Then, the cleansed blood is pumped back into the patient through a second shunt. In peritoneal dialysis, the cleansing solution is inserted directly into the abdominal cavity through a catheter. The body naturally cleanses the blood through the peritoneum—a thin membrane that lines the abdominal cavity. Typically, hemodialysis patients require three dialyses a week, with each treatment lasting about four hours. Patients who use peritoneal dialysis change their own cleansing solutions at home, usually about six times per day. This procedure can be done manually when active or automatically by machine when sleeping. However, the patient’s overall condition, as well as the positioning of the catheter, must be monitored regularly at the Dialysis Center. Big Bend’s cost accounting system, which was installed two years ago, allocates facilities costs (which at Big Bend essentially consist of building depreciation and interest on long-term debt) on the basis of square footage. Currently, the facilities cost allocation rate is $15 per square foot, so the facilities cost allocation is 20,000 × $15 = $300,000 for the Dialysis Center and 80,000 × $15 = $1,200,000 for the Outpatient Clinic. All other overhead costs, such as administration, finance, maintenance, and housekeeping, are lumped together and called “general overhead.” These costs are allocated on the basis of 10 percent of the revenues of each patient service department. The current allocation of general overhead is $270,000 for the Dialysis Center and $1,600,000 for the Outpatient Clinic, which results in total overhead allocations of $570,000 for the Dialysis Center and $2,800,000 for the Outpatient Clinic. Recent growth in volume of the Outpatient Clinic has created a need for 25 percent more space than currently assigned. Because the Outpatient Clinic is much larger than the Dialysis Center, and because its patients need frequent access to other departments within the hospital, the decision was made to keep the Outpatient Clinic in its current location and to move the Dialysis Center to another location to free up space. Such a move would boost the Outpatient Clinic space to 100,000 square feet, a 25 percent increase. After attempting to find new space for the Dialysis Center within the hospital complex, it was soon determined that a new 20,000 square foot building must be built. This building will be situated three blocks away from the hospital complex, in a location that is much more convenient for dialysis patients (and Center employees) because of ease of parking. The 20,000 square feet of space, which can be more efficiently utilized than the old space, allows for a substantial increase in patient volume, although it is unclear whether the move will result in additional dialysis patients. Construction cost of the new building is estimated at $120 per squarae foot, for a total cost of $2,4000,000. Additionally, the purchase of land, furniture and other fittings, along with relocation of current equipment, files and other items, would cost $1,600,000, for a total cost of $4,000,000. The $4,000,000 cost would be financed by a 7.75%, 20-year, first-mortgage loan. With both the principal amount (which can be considered depreciation) and interest are amortized over 20 years, the end result is an annual cost of financing of $4,000,000. Thus, it is possible to estimate the actual annual facilities costs for the new Dialysis Center, something that is not possible for units located within the hospital complex. Table 1 contains the projected profit and loss (P&L) statement for the Dialysis Center before adjusting for the move. The hospital’s department heads receive annual bonuses on the basis of each department’s contribution to the bottom line (profit). In the past, only direct costs were considered, but the hospital’s chief executive officer (CEO) has decided that bonuses would now be based on full (total) costs. The new approach to awarding bonuses, coupled with the potential for increases in indirect cost allocation, is of great concern to John Van Pelt, the director of the Dialysis Center. Under the current allocation of indirect costs, John would have a reasonable chance at an end-of-year bonus, as the forecast puts the Dialysis Center in the black. However, any increase in the indirect cost allocation would likely put him out of the money. At the next department heads’ meeting, John expressed his concern about the impact of any allocation changes on the Dialysis Center’s profitability, so the hospital’s CEO asked the chief financial officer (CFO), Rick Simmons, to look into the matter. In essence, the CEO said that the final allocation is up to Rick but that any allocation changes must be made within outpatient services. In other words, any change in indirect cost allocation to the Dialysis Center must be offset by an equal, but opposite, change in the allocation to the Outpatient Clinic. To get started, Rick created Table 2 (see Excel spreadsheet). In creating the table, Rick assumed that the new Dialysis Center would have the same number of stations as the old one, would serve the same number of patients, and would have the same reimbursement rates. Also, direct operating expenses would differ only slightly from the current situation because the same personnel and equipment would be used. Thus, for all practical purposes, the revenues and direct costs of the Dialysis Center would be unaffected by the move. The data in Table 2 for the expanded Outpatient Clinic are based on the assumption that the expansion would allow volume to increase by 25 percent and that both revenues and direct costs would increase by a like amount. Furthermore, to keep the analysis manageable, the assumption was made that the overall hospital allocation rates for both facilities costs and general overhead would not materially change because of the expansion. Rick knew that his “trial balloon” allocation, which is shown in Table 2 in the columns labeled “Initial Allocation,” would create some controversy. In the past, facilities costs were aggregated; so all departments were charged a cost based on the average embedded (historical) cost regardless of the actual age (or value) of the space occupied. Thus, a basement room with no windows was allocated the same facilities costs (per square foot) as was the fifth floor executive suite. Because many department heads thought this approach to be unfair, Rick wanted to begin allocating facilities overhead on a true cost basis. Thus, in his initial allocation, Rick used actual facilities costs ($400,000 per year) as the basis for the allocation to the Dialysis Center. Needless to say, John’s response to the initial allocation was less than enthusiastic. Specifically, he was concerned over several issues. **First, is it fair for the Dialysis center to suffer (in terms of profitability) because it will be charged actual facilities costs for its new location? After all, the Outpatient Clinic forced the move, which is being charged for facilities at the lower average allocation rate. Under the concept of charging for actual facilities costs department heads might be better off by resisting proposed moves to new (and potentially more efficient) facilities because such moves would result in increased facilities allocations. **Also, even if the actual cost concept were applied to the Dialysis Center, is the $400,000 annual allocation amount correct? After all, the building has a useful life that is probably significantly longer than 20 years – the life of the loan used to determine the allocation amount. If the true cost concept is applied, what would be the allocation in the 21st year, after the mortgage had been paid off? Finally, it appears that the revenue the Dialysis Center “receives” from patient use of the pharmacy. That is, the Dialysis Center books $800,000 in annual revenue but then is charged 800,000 for the drugs used. **Should this “revenue be counted when general overhead allocations are made? To make this point, John discovered that the pharmacy supplies used for dialysis actually cost the pharmacy $400,000, so the pharmacy makes a profit of $400,000 on drugs that are actually “sold” by the Dialysis Center. Before Rick was able to respond to John’s concerns, he suddenly left the facility to be the CFO of a competing investor-owned hospital. The task of completing the allocation study was given to you. You remember that to be of most benefit to the organization, cost allocations should 1- be perceived as fair by the parties involved and 2-Promote overall cost savings within the organization. However, you also realize that, in practice, cost allocation is very complex and somewhat arbitrary. Some department heads argue that the best approach to overhead allocations is the “Marxist approach.” By which allocations are based on each patient service department’s ability to cover overhead costs. Considering all the relevant issues, you must develop and justify a new indirect cost allocation scheme for outpatient services. **Summarize the results in the “Alternative Allocation” columns in table 2. Complete the blank lines (show equation) and be prepared to justify your recommendations at the next department heads’ meeting.

Convenient Food Markets (CFM) is a chain of more than 100 convenience stores. The company has faced increasing competition over the past several years, mainly because department store chains have been adding grocery departments and gas stations have been adding full-service convenience stores to their locations. As a consequence, the company has lost market share recently to competitors. The company has set a target minimum rate of return for its stores of 22%.

John Nicholson is the district manager of the 17 CFM stores in Bailingham. Nicholson’s district happens to include the original store, the first in the CFM chain, which opened more than 40 years ago. In fact, Nicholson’s first summer job was as a stock boy at the original store in the year that it opened. After university, he returned to CFM as a store manager, has worked his way up to district manager, and plans to retire in about five years.

CFM leases store buildings, investing significantly in the interior design, display, and decoration. The original CFM store remains profitable, in part because the fixtures and fittings are almost fully depreciated. While the company has invested in significant leasehold improvements in other newer stores, little has changed in the original store since opening day. While Nicholson has a sense of nostalgia for the original store, in reality, sales volumes have been falling and foot traffic has declined significantly in recent years. Fewer people are moving to the neighbourhood, as more and more people are moving to the suburbs.

All 17 stores in the district report to Nicholson, who is evaluated on the basis of average ROI for the stores in his district. For this calculation, the net book value of investment in furnishings and fixtures Page 504represents the operating assets of each of the stores. Operating income after depreciation on leasehold improvements represents the numerator for this calculation.

Nicholson is considering a proposal from a developer to open a new store in a newly developed residential neighbourhood. The developer has completed about 60% of the new homes planned for this neighbourhood and will complete the other 40% within the next 18 months. Due to limited capital to invest, Nicholson realizes that opening the new store would mean closing down an old store, and the original store seems to be the best candidate. To aid in his decision, Nicholson has collected the following information:

Required:

1.Calculate the ROI and residual income for both the original store and the new store.

2.Take on the role of an internal auditor at CFM. Assume that your task is to evaluate the effectiveness of the performance evaluation system for CFM district managers. In this capacity, write a short memo to the CFO of CFM to discuss your findings. In the memo, you should indicate whether you believe Nicholson will want to open thenew store, whether your analysis indicates that Nicholson should open the new store, and why or why not. You should also include your observations about the effect of the performance evaluation system on the decisions made by CFM district managers and what might be done to improve it.

Convenient Food Markets (CFM) is a chain of more than 100 convenience stores. The company has faced increasing competition over the past several years, mainly because department store chains have been adding grocery departments and gas stations have been adding full-service convenience stores to their locations. As a consequence, the company has lost market share recently to competitors. The company has set a target minimum rate of return for its stores of 22%.

John Nicholson is the district manager of the 17 CFM stores in Bailingham. Nicholson’s district happens to include the original store, the first in the CFM chain, which opened more than 40 years ago. In fact, Nicholson’s first summer job was as a stock boy at the original store in the year that it opened. After university, he returned to CFM as a store manager, has worked his way up to district manager, and plans to retire in about five years.

CFM leases store buildings, investing significantly in the interior design, display, and decoration. The original CFM store remains profitable, in part because the fixtures and fittings are almost fully depreciated. While the company has invested in significant leasehold improvements in other newer stores, little has changed in the original store since opening day. While Nicholson has a sense of nostalgia for the original store, in reality, sales volumes have been falling and foot traffic has declined significantly in recent years. Fewer people are moving to the neighbourhood, as more and more people are moving to the suburbs.

All 17 stores in the district report to Nicholson, who is evaluated on the basis of average ROI for the stores in his district. For this calculation, the net book value of investment in furnishings and fixtures Page 504represents the operating assets of each of the stores. Operating income after depreciation on leasehold improvements represents the numerator for this calculation.

Nicholson is considering a proposal from a developer to open a new store in a newly developed residential neighbourhood. The developer has completed about 60% of the new homes planned for this neighbourhood and will complete the other 40% within the next 18 months. Due to limited capital to invest, Nicholson realizes that opening the new store would mean closing down an old store, and the original store seems to be the best candidate. To aid in his decision, Nicholson has collected the following information:

Required:

1.Calculate the ROI and residual income for both the original store and the new store.

2. Take on the role of an internal auditor at CFM. Assume that your task is to evaluate the effectiveness of the performance evaluation system for CFM district managers. In this capacity, write a short memo to the CFO of CFM to discuss your findings. In the memo, you should indicate whether you believe Nicholson will want to open the new store, whether your analysis indicates that Nicholson should open the new store, and why or why not. You should also include your observations about the effect of the performance evaluation system on the decisions made by CFM district managers and what might be done to improve it.

Answer the following Questions for a Monopoly Firm.

To complete the table you need to know that the Average Total Cost (ATC) of producing 10 units of output is $980 and that the Total Variable Cost (VC) of producing 11 units of output is $10,400.

a) Fill in the missing information above for this Monopoly Firm. Note there are no numbers for MC and MR when Q=0.

b) At which unit of output does Diminishing Marginal Returns start? Please explain your answer.

c) If this firm produces in the Short Run, determine its profit maximizing/loss minimizing output level. Please explain your answer using MC and MR.

d) If this firm produces in the Short Run, determine its profit maximizing/loss minimizing price.  

e) If this firm produces in the Short Run, state its profit maximizing/loss minimizing profit amount.

f) If this firm shuts down in the Short Run, determine its profit maximizing/loss minimizing profit amount. Please explain your answer.

g) What should this firm do in the Short Run in order to maximize its profits/minimize its loss (produce or shut down)? Please explain your answer using numbers.

h) Explain what this firm should do in the Long Run. Why?

Consider the following cost functions:C(Q)=F+cQ,C(Q)=F+Q12, andC(Q)=F+aQ2, whereFrepresents fixed cost. Draw the curves corresponding to average costand marginal cost. Discuss whether any of these production technologies generates anatural monopoly.