The number of suppliers that enter and leave the market has no effect on the number of goods or services supplied.

Watson Corporation is considering buying a machine for $25,000. Its estimated useful life is 5 years, with no salvage value. Wat

LuckyWell [14K]

Answer:

12%

Explanation:

Accounting rate of return = Average net income / Average book value

Average book value = (Cost of equipment - salvage value) / 2

Average book value = ($25,000 - 0) / 2 = $12,500

AAR = $1500 / $12,500 = 0.12 = 12%

7 0

3 years ago

Suppose a monopoly's inverse demand curve is p = 13 — Q, and its cost function is C(Q) = 25 + Q + 0.5Q2. (a) Use profit maximiza

Lera25 [3.4K]

Answer:

(a) Q* = 6

(b) The price in the market is $7 and the monopoly's loss is also 7.

(c) The monopoly should operate because the price of 7 is greater than the AVC of 4.

Explanation:

(a) Use profit maximization to determine the profit maximizing quantity, Q*, for the monopoly. Show all steps for the profit maximization process.

Given $C(Q) = 25 + Q + 0.5Q^2$ ............................ (1)

MC = C'(Q) = 1 + Q ............................................... (2)

p = 13 — Q ................................................................(3)

Profit is maximized when P = MC, Therefore, we equate equations (2) and (3) and have:

1 + Q = 13 - Q

Q + Q = 13 - 1

2Q = 12

Q* = 12/2

Q* = 6 <-------------- Profit maximizing Q*

(b) At Q*, what is the price in the market and what is the monopoly's profit?

Substituting 6 for Q in equation (3), we have:

p = 13 — 6

p = 7 <-------------- The price in the market

Revenue = Q*P = 6 * 7 = 42

To obtain cost, substitute 6 for Q in equation as follows:

Cost = $C(Q) = 25 + 6 + 0.5(6)^2$

= 31 + (0.5 * 36)

= 31 + 18

Cost = 49

Profit (loss) = Revenue - Cost = 42 - 49 = - 7 loss

(c) In the short run, should the monopoly operate or shut down? Why?

From equation (1), we have:

Fixed cost = 25

Variable cost (VC) = $Q + 0.5Q^2 = 6 + 0.5(6)^2 = 6 + 18 = 24$

Average variable cost (AVC) = VC/Q = 24/6 = 4

p > AVC => 7 > 4

The monopoly should operate because price of 7 is greater than the AVC of 4. Continuing operation will therefore enable the monopoly to cover variable costs fully and some part of the fixed cost. This way, loss will be minimized.

6 0

4 years ago

You are the manager at a large call center that markets insurance products. Part of your duties is handling internal complaints

svetoff [14.1K]

Answer and Explanation:

Being a manager managing internal and external problems, it will be part of my responsibility to faithfully handle of complaint that is in accordance with the policies and laws of the land of the company. The situations given would be dealt with as follows

(1) In the case of sexual discrimination cases, detailed responses must be obtained from all parties involved. A direct message that abuse at the workplace in the company will not be tolerated would be made to all workers, and directly to the harasser.In fact, management should be aware of the accident in order to take early preventive steps, so that the situation will not get worse.

(2) The condition that needs to be explained by the salesperson who sold the policy in the event of a customer problem. In case he is convicted he must be warned of potential incidents. In accordance with company policy, the buyer may have the option to continue with the policy, cancellation, rewards and other low-cost insurance options may be offered.

(3) In case of customer complaint about the sales person not being sufficiently knowledgeable or certified to sell the product, the customer must be assured that the company employs only authorized sales person. Nevertheless, as a result of the customers' bad experience, a senior sales staff or manager might be recommended to meet with the customer and handle his questions.Furthermore, the sales workers against whom a report has been made should be recommended to upgrade themselves with sufficient information and after discussion with their manager should be considered for retraining.

(4) The employee should be informed on complaint against not being promoted because of age that any discrimination against an individual is against the organisational policies. The complainant's points must be discussed with the manager concerned, and the complainant should be told of the manager's conclusion.

5 0

4 years ago

Eliza took her car to her regular mechanic, who had a private business. The mechanic often advertised on billboards, writing "Re

AysviL [449]

Answer: a) The court found that the advertisements were not inherently misleading. However, it did find that regulating the advertisement in question was more extensive than necessary to protect the public interest.

Explanation: An advertisement is a notice or action promoting a product or service and soliciting patronage.

When there is no regulation of an advert, abuse is expected. Protecting the public interest is important as advertisement may be misleading if there are no extensive rules.

In a situation whereby the mechanics advertisement was found not to be inherently misleading, a different verdict may have been given.

4 0

3 years ago

Read 2 more answers

When managers and employees within the same department are brought together in cross-functional teams to solve particular proble

katen-ka-za [31]

Yes. This is a team-based design since managers and employees are being grouped into teams in order to solve certain problems. They help hand in hand in coming up to a solution. Hope this answers the question. Have a nice day.

3 0

4 years ago