For a decision with a scarce resource, the decision rule is to choose the alternative with the: best contribution margin per unit of scarce resource best contribution margin per unit of output lowest amount of allocated fixed costs lowest amount of fixed cost per unit of scarce resource lowest amount of fixed cost per unit of output
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For a decision with a scarce resource, the decision rule is to choose the alternative with the:
- best contribution margin per unit of scarce resource
- best contribution margin per unit of output
- lowest amount of allocated fixed costs
- lowest amount of fixed cost per unit of scarce resource
- lowest amount of fixed cost per unit of output
Step by step
Solved in 2 steps
- C(x) = 0.01x-0.3x + 10x gives the cost, in thousands of dollars, to produce x thousand items. (a) Find a formula for the marginal cost. (b) Find C'(0). Give units. (c) Graph the marginal cost function. Use your graph to find the minimum marginal cost, the production level for which the marginal cost is the smallest. (d) For what value of x does the marginal cost return to C'(0)? (a) Find a formula for the marginal cost. c'(x) =D (b) Find C'(0). Give units. c'(0) = (c) Use the derivative of the marginal cost function to find the minimum marginal cost, the production level for which the marginal cost is the smallest. The minimum marginal cost of additional dollars per item produced occurs when thousand items are produced. d) Recall your answer to part b. For what value of x does the marginal cost return to C'(0)? Marginal cost returns to this value of C (x) when x = items are produced.what is coasian transaction cost?During the night, the electricity sector has a marginal cost of $1/MWh (megawatt-hour) forthe first 100 MWh produced (from wind turbines), and $20/MWh for each additional unit (from gasgenerators). During the day, they have a marginal cost of $1/MWh (megawatt-hour) for the first 50MWh produced (from solar panels), and $20/MWh for each additional unit (from gas generators).Nighttime and daytime demand are given by QnightD = 50 −P and QdayD = 200 −P , respectively.What are the market quantity and price during the day, and the market quantity and price at night?This is a model of the wholesale market for electricity, which you can think of as being competitive,but there is no resale between night and day.
- If marginal cost is greater than average total cost, then average total cost must be increasing. Group of answer choices True FalseA police department wants to allocate the indirect cost of speed monitoring to the three toll roads around the city. An allocation basis that may notbe reasonable is:a. miles of toll road monitored.b. average number of cars patrolling per hour.c. amount of car traffic per section of toll road.d. cost to operate a patrol car.swered Costs per Unit (dollars) 1000 900 800 700 600 500 400 300 200 100 0 4 Average total cost B Marginal cost Output (units per day) Average variable cost Average fixed cost 22 24 How many units of output should be produced per day if the price of the product is $600/unit? (provide an approximate answer in whole numbers)
- Refer to the accompanying table below. The marginal cost of the 4tn unit of activity is: Units of Activity Total Cost Total Benefit $0 $0 1 $2 $12 2 $6 $22 $12 $20 3. $30 4 $36 $30 $40 6 $42 $42 7 $56 $43Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average production rate of 2,000 units. Setup cost is $10; carrying cost is $1. What is the optimalnumber of units to be produced each time?Example The following equations shows the effect of time (x) in year and salt concentration (y) in ppm on the total cost due to corrosion failure for a particular operation 12500 CT = 4x + + 2.5 y + 500 ху Determine the optimum value of x and y, and calculate the total cost. Solution 12500 = 0 x?y 12500 3125 x2 = 4y and ac, = 2.5 ду 12500 = 0 xy2 12500 5000 2.5 y2 Then 5000 (3125 y? у-20 рpm And x= 0.625 year The total cost will be 20505 at the optimum point Н.W Repeat the previous example if the total cost equation is C, = x? + xy + 2y² + 200
- The Maximum Requirment matrix is given below: T0: 2 6 4 7 4 T1: 3 3 6 6 7 T2: 2 2 2 1 1 T3: 2 5 3 7 4 T4: 3 4 5 7 7 The Available matrix is given below: 2 0 2 2 1 What is the need sequence for thread T0 ? [Hints. input only the values one after another starting with resourse A, then resource B without any space or anything in between. for example - if you insert 12345, that will mean the thread needs 1 instance of resource A, 2 instance of resource B and so on. ] What is the need sequence for thread T1 ? What is the need sequence for thread T2 ? What is the need sequence for thread T3 ? What is the need sequence for thread T4 ? What is the safe sequence? [Note, try to exexute the threads sequentitally that is T0, then T1 and so on. If T2 gets first chance in safe sequence, then again start with T0, then T1 and so on. ] [Hints. input safe sequence without any space or anything in between such as - T4T2T0T1T3] While identifying the above safe sequence, what are the…(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…Phil's Car Wash Inc. has alternative production methods it can use. Some details of the costs of using these methods are described in the table below: Production Production Number of cars washed per hour 0 1 2 3 4 5 6 11 10 9 8 7 6 5 Method 1 Fixed cost ($) Marginal Cost ($) 0 1 2 3 NNNNNNN 4 5 6 2 2 2 2 2 2 2 1 2 3 4 5 6 Method 2 Fixed cost ($) Marginal Cost ($) 10 10 10 10 10 10 10 a) What is the ATC of washing from one to six cars per hour using production method 1 and production method 2? Draw a graph of the Long-run Average total cost of washing from one to six cars per hour. How many cars would Phil need to expect to wash per hour for it to be optimal for his business to use production method 2? 1 1 Phil's business operates in a monopolistically competitive market. Demand for car washes from his firm is: Price Quantity demanded 1 1 1 1 b) Suppose Phil is using production method 1. Assume that his business must set the same price for each car wash. What will be the…