Assume your city government has been contacting with a single garbage collection firm that has been granted an exclusive franchi
se, the sole right, to pick up trash within your entire city limits. However, it has been proposed that companies be allowed to compete for business with residents on an individual basis. The city government has estimated the price residents are willing to pay for various numbers of garbage collections per month and the total cost facing the garbage collector per resident as shown in the following table. Pickup (Q) Price/Pickup Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC)
0 $4.20 0 --- $3.20 --- ---
1 $3.80 $4.20
2 $3.40 $5.60
3 $3.00 $7.80
4 $2.60 $10.40
5 $2.20 $13.40
6 $1.90 $16.80
1. What are the fixed costs per month of garbage collection per resident? Explain your answer
2. Considering that the current garbage collection firm the city has contracted with has a monopoly in garbage collection services, what is the current number of collections residents receive per month and the price charged residents for each collection? What is the economic profit received from each resident by the monopoly firm? (Note: Profit received form individual resident must be calculated a per unit basis)
3. If competitive bidding were allowed and therefore a competitive market for garbage collection services developed, what would the number of collections per month and the price charged residents per collection? What is the economic profit received from each resident by the competitive firm? (Note that in a competitive market (chapter 13), P=MC=MR)
4. Based on the above analysis, should the city government allow competitive bidding? Why? Would you expect there to be any quality differences between the monopolistic and competitive trash collection firms?
Answer is to save reprimands until the end of the work day or preferably before a weekend this is to ensure privacy and to not embarrass or violate the employee's rights
The statement is false as, it is not allowed or permissible for information to flow in criss- cross or back tracking pattern in the office as long as the employees did not complain. The information is very crucial for every business, and the person or individual or employee should disclose the information in any manner un till it is permissible by the higher authorities or necessary to shared among them.
