In a market, there are 4 suppliers and 8 customers. The unit cost of transaction between a supplier and a customer is uniform and is equal to Rs. 5000. The unit cost of transaction between a middle man and a supplier or a customer is Rs 1000. What is the maximum number of middle men that can be accommodated in the above market? State the assumptions involved.

In a market, there are 4 suppliers and 8 customers. The unit cost of transaction between a supplier and a customer is uniform and is equal to Rs. 5000. The unit cost of transaction between a middle man and a supplier or a customer is Rs 1000. What is the maximum number of middle men that can be accommodated in the above market? State the assumptions involved.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Mala was selling his house. The asking price was $320,000, and he decided he would take no less than $300,000. After some negotiation, Zainah purchased the house for $305,000. Mala's producer surplus was: * A.$15,000 B.$10,000 C.$5,000 D.$20,000
Mang Isko, a fisherman, is paid ₱180.00 for every 1 kilo of fish he catches. If within the day, he is able to catch 50 kilos of fish, how much is his gross pay for the day?
2-8e What are the characteristics of a long butterfly spread: e. maxiumum profit
Carving knives Home users Professional Chefs No-name brand $40 $70 High-end professional series $60 $130 Given that the firm wants to sell both the versions, how high can the high-end professional knives be priced? options: A)$60 B)$70 C)$80 D)$100
Assume that a product sells for $100 per ton and thatPittsburgh is the basing-point city for calculating transportation charges. Shipping from Pittsburgh to a potentialcustomer in Cincinnati costs $10 per ton. The actual shipping costs of suppliers in three other cities are $8 per tonfor Supplier A, $11 per ton for Supplier B, and $10 per tonfor Supplier C. Using this information, answer the followingquestions:a. What delivered price would a salesperson for Supplier Aquote to the Cincinnati customer?b. What delivered price would a salesperson for Supplier Bquote to the Cincinnati customer?c. What delivered price would a salesperson for Supplier Cquote to the Cincinnati customer?d. How much would each supplier net (after subtractingactual shipping costs) per ton on the sale?
ABC Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 per day, while demand is 40 per day. Holding costs are $10.00 per unit per year; set-up costs $500.00. A. Compute for the EOQ. B. Compute for the total costs (ordering and holding costs).
At what price would a U.S. customer be charged when buying a new BMW? Please do not put a separation comma between every 3 digits. For example, if the answer is 65 thousand dollars, put 65000 in the answer field.
2. A small-scale manufacturer can sell q number of units of each product produced per week at a price of (18 – 0.02q) pesos. It costs P8 to make each unit of the product. The fixed cost associated with producing and selling the product weekly is P450. Determine: a. The TR, TC and profit Function. b. Production level to break-even. c. Production level to maximize profit. d. Maximum profit at this level. e. Interpret the meaning of the two break-even points.
Suppose we know that p=1,056- D/5, where p = price in dollars and D = annual demand. The total cost per year can be approximated by $1,000+ 2D2. a.Determine the value of D that maximizes profit. b.Show that in part(a) profit has been maximized rather than minimized. c. Find the maximum profit Show complete solution.
A trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta areaor Bekasi. Each of these area options has a local supplier providingThe price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question:A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area.b. Sketch a crossover diagram that illustrates these conditionsc. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?
Printer quotes a price of a birr7500 for printing 1000 copies of a book and birr.15000 for printing 2500 copies. Assuming a linear relationship and that 2000 books are printed.(A)What is marginal cost of the last book printed.(B)Calculate ATC,AVC,AFC
Jenni has decided to start knitting during quarantine. She decides to open an etsy shop where she can sellknitted hats. Each hat costs $4.50 in materials to produce, in addition to the fee of $150 to license her shop.She plans on selling each hat for $24.50. (a) Write the cost, revenue, and profit equations for Jenni’s hat buisness. (b) Determine the profit if 13 hats are sold.(c) Determine thebreak-evenpoint.