London Hydro (LH), the electricity provider of London, Ontario, and surrounding areas, is wrapping up a lengthy and costly system upgrade that was sparked by government regulations. Ontario prides itself on using the latest technologies to conserve electricity. In 1998 it passed two regulations that paved the way for smart-metering: the Electricity Act, 1998 and the Ontario Energy Board Act, 1998. Smart-metering uses computerized electric meters on homes and small businesses that can record electricity use on an hourly basis. So, rather than totalling up kilowatt-hours on a monthly basis as traditional meters do, smart meters provide a record of electricity use every hour. Smart meters are able to report usage directly to utility companies over phone lines or the Internet. The benefit of smart meters, in addition to saving the electric company the cost of sending an employee to read meters, is setting time-of-use pricing. Time-of-use pricing charges customers more for electricity during peak hours (11 a.m.– 5 p.m.), less during mid-peak hours (7 a.m.–11 a.m. and 5 p.m.–10 p.m.), and even less during off-peak hours (10 p.m.– 7 a.m.). Time-of-use pricing should encourage consumers to consume less during peak hours, adding up to big savings for Ontario, its citizens, and the environment. Ontario’s smart metering initiatives have power companies across the province scrambling to meet specifications and deadlines. Software and hardware must be purchased and installed to prepare for the arrival of a tidal wave of customer consumption data. London Hydro started to prepare early in hopes of getting a jump on the competition. Rather than adding a new system to accommodate smart metering, London Hydro decided it was time to upgrade all of its systems. London Hydro’s old custom-built system could barely keep up with current usage. The company decided to shop around for a new system that could not only accommodate smart metering but could tie that data in with core business systems. Mridula Sharma, London Hydro’s Director of Information Services, stated that LH was in need of “a more integratable solution that was scalable and flexible.” The company needed to “prepare for future growth as well as enhance business process workflow,” Sharma said. Sharma and her team set to work outlining the details of the new system based on government mandates and internal needs. With a systems analysis report in hand, Sharma began searching for a company that could design and implement the system. Soon, she narrowed the field to three candidates: SPL Solutions (Oracle), another customer-built solution, and SAP for utilities. Sharma chose SAP primarily because the system was designed for use by a utility company and required little customization. London Hydro selected another outside firm, Wipro Technologies, to implement the system because Wipro had extensive experience implementing utility software. The resulting system provides powerful management of smart metering data flowing from the government’s central smart metering data repository. The task of assigning time-of-use prices based on customer consumption is fully automated and will cause London Hydro no additional overhead.
[Source: Chapter 12, R. M. Stair and G. W. Reynolds, Principles of Information Systems: A Managerial Approach, 9th ed. Cengage, 2010.]
a) Why did London Hydro initiate its smart-metering system development?
b) What benefits did London Hydro enjoy by purchasing an off-the-shelf system and outsourcing the implementation?
In: Computer Science
Using the revenue function given in the earlier question above, at an interest rate of 25%, if the firm makes it optimal choice, then its total profit would be? Revenue equal to $4.7k^0.5
A) 4.4
B) 4.85
C) 5.33
D) 5.75
previous question:
A firm uses capital, K, to produce revenue. The revenue function is given as Revenue = $4.7K0.5. If the interest rate is currently 21%, what is optimal K for the firm to choose?
Group of answer choices
2
3
4
5
In: Economics
Received a cash advance of $3500 from a client for the tax consultancy services to be performed in the next three months. The journal entry to record the transaction is:
Select one:
a. debit, service revenue $3500 and credit, cash $3500.
b. debit, service revenue received in advance $3500 and credit, cash $3500.
c. debit, cash $3500 and credit, service revenue received in advance $3500.
d. debit, service revenue received in advance $3500 and credit, service revenue $3500.
In: Accounting
1: If a firm is facing an exogenously given price, P0, and industry conditions change such that the new market price is P1 > P0, which of the following is true?
a. None of the other options are correct.
b. The total revenue curve will become steeper, with an increase in slope on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
c. The total revenue curve will reach its maximum at a new, higher output than under the old price, P0, and total revenue would decline for further increases in output.
d. There will be no change to the total revenue curve of this individual firm.
e The total revenue curve will shift up vertically on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
2: A firm facing an exogenously given market price, P0, will find its short run profit maximizing output is always where:
a. Average total cost is just tangent to marginal revenue
b. Marginal cost is equal to marginal revenue at a level greater than average variable cost
c. Marginal cost is equal to marginal revenue at a level greater than average variable cost AND average total cost is just tangent to marginal revenue
d. Marginal revenue exceeds average total cost
e. Marginal cost is minimized
In: Economics
1
If a firm is facing an exogenously given price, P0, and industry conditions change such that the new market price is P1 > P0, which of the following is true?
a. None of the other options are correct.
b. The total revenue curve will become steeper, with an increase in slope on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
c. The total revenue curve will reach its maximum at a new, higher output than under the old price, P0, and total revenue would decline for further increases in output.
d. There will be no change to the total revenue curve of this individual firm.
e The total revenue curve will shift up vertically on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
2
A firm facing an exogenously given market price, P0, will find its short run profit maximizing output is always where:
a. Average total cost is just tangent to marginal revenue
b. Marginal cost is equal to marginal revenue at a level greater than average variable cost
c. Marginal cost is equal to marginal revenue at a level greater than average variable cost AND average total cost is just tangent to marginal revenue
d. Marginal revenue exceeds average total cost
e. Marginal cost is minimized
In: Economics
When price elasticity of demand is equal to unity, a small decrease in price:
increases total revenue.
decreases total revenue.
has no effect on revenues.
raises marginal revenue.
In: Economics
PURE MONOPOLY
IN-CLASS WORKSHEET 1
This question examines the pure monopoly market for wonky widgets. You will use a market demand curve to identify the maximum willingness to pay by consumers for different quantities of wonky widgets, the total revenue associated with selling a particular quantity, and the marginal revenue earned from each unit.
Wonky Widgets are produced and sold by a single firm, Walter’s Wonky Widgets. The monopolist faces a market demand characterized by the function:
P = 10 − 2Q
where Q is the number of wonky widgets that the monopolist produces and sells, and P represents consumers’ maximum willingness to pay for a particular quantity. The table below will help you identify and organize different relationships between quantity, price, total revenue, and marginal revenue.
Quantity (widgets) | Price (dollars) | Total Revenue (dollars) | Marginal Revenue (dollars) |
0 | ----- | ||
1 | |||
2 | $6 | ||
3 | $12 | $0 | |
4 | $2 | ||
5 | −8 |
Task 1: In the table above, identify consumers’ maximum willingness to pay for each quantity of widgets and fill in all blank cells in the “Price” column. You can find these values by plugging different quantities into the demand function above.
Task 2: In the table above, identify the total revenue that Walter’s Wonky Widgets earns when it produces and sells each quantity of widgets and fill in all blank cells in the “Total Revenue” column. Hint: Remember that Total Revenue = Price x Quantity.
Task 3: In the table above, identify the marginal revenue that Walter’s Wonky Widgets earns when it produces and sells each quantity of widgets and fill in all blank cells in the “Marginal Revenue” column. Hint: Remember that marginal revenue is the change in total revenue associated with producing each additional unit of output.
In: Economics
For a monopolist, marginal revenue equals
Multiple Choice Price. Price times quantity. The change in total revenue divided by the change in quantity. The change in quantity divided by the change in total revenue
In: Economics
pls carefully review
Choose the correct statement.
A. The change in total revenue that arises from a price change is independent of the price elasticity of demand.
B. A rise in price decreases total revenue.
C. A rise in price increases total revenue.
D. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold.
In: Economics
Rental receipts for the period July 1, 2013, through June 30, 2014, were collected on June 30, 2013. The effects of these economic events on the 2013 financial statements for unearned revenue and rent revenue are ?
| Unearned Revenue | Rent Revenue | |
| I. | Increase | Increase |
| II. | Increase | Decrease |
| III. | Decrease | No effect |
| IV. | Decrease | Increase |
In: Accounting