Saturday, February 15, 2020

Questios about graphs Lab Report Example | Topics and Well Written Essays - 500 words

Questios about graphs - Lab Report Example Such is the best solution rather than closing down the company. The number of firms remains steady in neither short-run, whereby no firm can enter nor exit. When the market price exceeds the average variable cost, the revenue generated by the firms will then cover the variable cost and some revenue left over to offset the fixed costs. The quantity supplied by each company will decrease and remain steady to where it can sustain to operate in the conditions. Thus, the quantity supplied in the market may not meet the required demand by the customers since the quantity will neither decrease nor increase till the firms are out of operating at loss (Caimcross 66). Q3. b) Monopoly is a market where production is under the control of a single supply. The marginal revenue is less than the average revenue because when the monopolists wants to sell more, they must reduce the price on each unit; this prevents the competition from happening. Q4. b) Economic profits are driven to zero when the demand curve, as well as the average total cost curves, are tangent to each other. In this case, the prices are equal to average total cost and thus the firms will earn zero economic profits. The quantity of outputs in the monopolistic competition is much smaller than the quantity that minimizes average total cost. But in perfect competition, price is equal to the minimum average total cost thus the companies produce at their efficient scale. The price in monopolistic competition is greater than marginal cost since the firm has the market power unlike in perfect competition where it is equal to marginal cost. Q5. b) Oligopoly is where a few firms exist in the market. The oligopolies face the downward sloping demand curve. In this case, the rival firms cannot follow a price increase by one firm hence demand will be relatively elastic and rises in the price that will lead to a fall in total revenue of the firm. Also, the rivals

Sunday, February 2, 2020

Ethics Essay Example | Topics and Well Written Essays - 1000 words - 21

Ethics - Essay Example The construction costs are greatly reduced in this plant. The effects of the same include use of cheaper controls from Lutz and Lutz, a decision not to line the evaporation ponds that would have prevented the leakage of hazardous substances into the groundwater, and a decision not to purchase pipes and connectors of high steel or high pressure alloy materials (Mandel & Martin, 2003). In the long run, the plan was not successful as leakages were experienced in the connections as well as failure to control the system automatically; thus, leading to the plan manager doing manual controls (Mandel & Martin, 2003). Worse still, the plant manager dies whilst manually controlling the plant. This case has various stakeholders that had vested interests in the outcome. First was the Phaust administration that wanted to introduce a product that would see to a tough competition with Chemitoil’s paint remover. Fred Martinez was yet another stakeholder who aimed at getting profits from selling off Chemitoil’s design to favor Phaust Chemical manufacturers (Mandel & Martin, 2003). Chuck, the vice president of Phaust is also a major stakeholder and plays a major role in advising Fred to cut down the construction costs of the new plant in Mexico. The new plant manager who dies during the manufacturing process is also a stakeholder as he agrees to control the manufacturing process manually as opposed to automatic control (Mandel & Martin, 2003). The personality types and communication techniques of the stakeholders clearly explain the motivation behind their decisions. Phaust administration was motivation py greed to maintain the markets as the major manufacturer of the major paint remover, and the need to compete with Chemitoil so as to prevent them from taking over the industry. Fred Martinez was motivated by the need to acquire money from Phaust as