X Segment has excess capacity. It produces product X at total product cost of 100 (includes 20 FC). X Segment normally sells the product X to customers at 150 per unit. Y Segment needs product X, normally, they purchase it from outsider at 180 per unit. What is the maximum

X Segment has excess capacity. It produces product X at total product cost of 100 (includes 20 FC). X Segment normally sells the product X to customers at 150 per unit. Y Segment needs product X, normally, they purchase it from outsider at 180 per unit. What is the maximum

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What Is a Commercial Bank?

Q: Is it possible to make money on YouTube as a side hustle? I want to create two channels. Music beats…

A: A market is the place where a producer can offer his goods and services, and a buyer can consume…

Q: Suppose that you own a used car dealership. You want to sell a 2005 Honda Civic LX. You know that…

A: Willingness to pay, often known as WTP, is the highest point a potential customer will go before…

Q: Suppose the goods-market in an open economy can be represented by the following equations: Y = a +…

A: In the aggregate expenditure model, equilibrium occurs where aggregate expenditure is equal to…

Q: 38. Which of the following statements on energy efficiency gap is correct? a. It is mainly due to…

A: As per the defination Energy efficiency gap is the difference between the cost-minimizing level of…

Q: monopoly drug producer that has a constant marginal cost of $1 sells in only two countries and faces…

A: Monopoly firm produces where the MR=MC. Monopoly is price maker.

Q: Which of the following statements on dynamic efficiency is correct? a. Dynamic efficiency is the…

A: Dynamic efficiency is worried about the useful productivity of a firm throughout some undefined time…

Q: Which one does not belong to the externalities contributed by oil? a. Emissions that pollute the…

A: Externality is referred to as a cost or benefit imposed on the third party which is not involved in…

Q: se the linear demand curve shown below to answer the following questions. a. The point…

A: Introduction Elasticity of demand refers to the degree of responsiveness of quantity demanded of a…

Q: Consider a Ricardian world of countries, A and B, two goods, X and Y, and a single factor of…

A: Given Country A The production function for good x Qx=0.1Lx The production function…

Q: Pearl Ltd. intends to manufacture and market mechanical weighing scales. Their research department…

A: Given information; x = 6200 - 50p C = 7400 + 70x Where x is the number of scales that can be sold at…

Q: Jimmy Carpenter, a self-employed individual, is opening a retirement account at a bank. His goal is…

A: In the part a, The future value of 20 payments is $1,000,000 rate of interest (i)=8% yearly…

Q: What is inflation and its causes?

Q: A town in Wyoming wants to drill a geothermal well to provide district heating steam and hot water…

A: given that, Capital Investment is $732,000 Savings due to a reduction in Gas consumption is…

Q: Jackson has an income of $600 and he spends all of his income on corn and fish. The price of corn is…

A: Budget is the maximum amount of money that can be spent on the purchase of both goods. Consumer can…

Q: Assume that the demand for cosmetic or plastic surgery is price inelastic. Are the following…

A: Elasticity is used to explain the relationship that exists between demand/supply and their…

Q: 2. JetBlue and Delta are the only two major airlines with regularly scheduled service between New…

A: In the field of game theory, the term "Nash Equilibrium" refers to a notion that describes any…

Q: .5 .5 Suppose you have the utility function U(x, y) = X +y. The price of good x is $10 and the price…

Q: Consider an exchange problem in which 10 units of x and 5 units of y are to be allocated between…

A: Introduction Production in Pareto efficient when it is not possible to reallocate the resources to…

Q: How does economic course differ from energy economics? a. Energy is relatively scarce unlikely…

A: Energy economics is an expansive logical branch of knowledge which incorporates points connected…

Q: An employee wants to retire and receive P5000 a month. She wants to pass this monthly payment to…

A: Given, Monthly payments = P 5,000 Interest rate = 8% compounded annually

Q: In 2008, the Federal Reserve began paying interest on reserves held by banks. The interest rate they…

A: The reserve deposit ratio, also referred to as the cash reserve ratio, is the portion of deposits…

Q: Suppose a new type of tea is found to be healthy Thes made the equilibrium price rise by 20% As a…

A: In easy language we can say that the equilibrium price is known to be as the relative price where…

Q: To promote long-run growth, the primary economic function of the financial system is to: Group of…

A: Financial systems that work efficiently distribute resources to people with the finest ideas and…

Q: For each scenario, calculate the income elasticity of demand, determine whether the good is inferior…

A: income elasticity refers or show the change in demand due to the change in elasticity , which means…

Q: One plan to raise money for Texas schools involves an "enrichment tax" that could collect $56 for…

A: In financial matters and money, present worth (PV), otherwise called present limited esteem, is the…

Q: The effect of the changes in income and prices?

Q: linear demand curve shown below to answer the following questions. a. The point…

A: Elasticity of demand is a theory in economics that is utilized to explain the relationship between…

Q: The monopoly can verify consumers to decide which market they belong to so that it charge different…

A: Monopoly is a situation where there is a single seller in the market. In conventional economic…

Q: Fiscal and monetary policy may be used to help an economy recover and get out of a slump. Explain 2…

A: Expansionary strategy is utilized to invigorate an economy during downturn or downturn by supporting…

Q: Question 1 In the US economy, the money supply is controlled by the US Treasury O O Federal Reserve…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: 4. The market demand function for birthday cards in Greenwich Village is: P= 100 - 100. The total…

A: Profits in the case of first-degree price discrimination will be equal to producer surplus minus the…

Q: Consider the market for product ABC, when the price is at Php 12, quantity demanded is 6 units and…

A: First, we formulate the demand function.The standard formula of the demand function is Q = a - b P…

Q: As the operator of XYZ Fitness gym, you calculate your demand equation to be x = -0 .0 6 p + 8 4…

A: Given: To find the price to obtain the maximum revenue and also the maximum revenue is given as,…

Q: In a small town, there's a mousepad factory which employs workers at $8 an hour, for forty-hour…

A: Opportunity cost is the cost of loosing one opportunity for gaining the best other one or we can say…

Q: During the financial crisis, banks excess reserves [beyond what is required by regulatory reserve…

A: The federal reserve uses the monetary policy to correct disequilibrium in the economy. The federal…

Q: Let F be a function of two variables, defined by F(K, L) = 2 In K + 5 In L. (a) Find RLK= F₁'(K, L)…

A: Elasticity of substitution measures the ease with which one input can be substituted for other.

Q: A polluter has abatement costs given by MAC = 405-0.15E, and the emissions cause damages given by MD…

A: The expense made when producing goods and services in an economy is known as the cost. It implies…

Q: What Is a Commercial Bank?

A: Banking system plays the critical role in an economy. It collects the funds from surplus sector…

Q: You are managing a restaurant establishment earning net of Php800,000.00 per year decides to open…

A: Introduction The expenditure incurred on these inputs is called cost of production. Opportunity cost…

Q: A traditional theory did not include the growth of the labor productivity in the computation of…

A: In the economic matters investigation of the public area, economic and social improvement is the…

Q: Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of…

A: Given, Consumer's income = 200000 Price of an opera ticket = 150 Price of a rural tour = 500

Q: Which of the following is correct with regard to job specialization? a. Its application is limited…

A: Job specialization is a process that occurs when employees gain knowledge, education and experience…

Q: . Let's pretend that our current system of money was strictly Base Ten, so that the only currency…

A: Since you have posted a question with multiple subparts, we will solve first three sub parts for…

Q: In the IS-LM framework, all others remain the same, the decline in investment spending is…

A: IS curve shows the combination of interest rate and output level which clears the goods market LM…

Q: A primary reason a country would put restrictions on its own currency is to Select one: a. encourage…

A: Exchange rate is the rate at which the nation's currency is exchanged in foreign exchange rate and…

Q: Suppose that there is $80,000 in checking accounts, $200,000 in bonds, $100,000 in savings accounts,…

A: M1 as a measure of money supply includes Currency (Cash and coins), Demand deposits (Checking…

Q: Case Scenario/ Real World is television production company that manufactures movies. The market…

A: Demand equation: x = 25000-50p Cost equation: C(x) = 18000+500x where: x = quantity demanded of…

Q: $12.5 3 $10.0 8.0 $7.5 $5.0 $2.5 $0.0 0 10 20 30 40 50 60 70 80 90 100110120130 Quantity O $10 When…

A: In this question, we have to find per unit profit at a profit-maximizing output level. We have given…

Q: a. b. C. Use the linear demand curve shown below to answer the following questions. 750 Price…

A: Point elasticity of demand calculate or represent the elasticity of demand at a particular point or…

Question

Explain the answer.

X Segment has excess capacity. It
produces product X at total product
cost of 100 (includes 20 FC). X
Segment normally sells the product
X to customers at 150 per unit. Y
Segment needs product X, normally,
they purchase it from outsider at
180 per unit. What is the maximum
price that Segment Y will be willing
to pay for the product if it will be
purchased internally?
●
• 80
O • 120
• 180
• 150
O • None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A hotel's CPOR is $45.00. The hotel's highest cost distribution channel, on average, consists of a 22% third-party commission and the hotel pays an additional 3% franchise fee on all room revenue. What would be this hotel's average minimum ADR sales point? O $60.00 O $65.00 O $50.00 O $ 55.00
A telecommunications business may produce 500, 000 units per month. The company generates a total monthly income of P350, 000, 000 at its current capacity of 350, 000 units per month. The firm has a fixed monthly cost of P100, 000, 000 and a var i able monthly cost of P200 per unit. a. What is the present profit or loss in millions of pesos? b. What is the break even quantity? c. If the production is increased to 80% of its capacity what is the profit or loss in millions of pesos?
To automate one of its production processes, theMilwaukee Corporation bought three flexible manufacturing cells at a price of $400,000 each. Whenthey were delivered, Milwaukee paid freight chargesof $20,000 and handling fees of $15,000. Site preparation for these cells cost $45,000. Six foremen, eachearning $20 an hour, worked five 40-hour weeks toset up and test the manufacturing cells. Special wiring and other materials applicable to the new manufacturing cells cost $3,500. Determine the cost basis(amount to be capitalized) for these cells.
Zodiac Furniture is considering the production of anew line of metal offi ce chairs. Th e chairs can be producedin-house using either process A or process B. Th e chairs canalso be purchased from an outside supplier. Specify the levelsof demand for each processing alternative given the costs in thetable. Fixed Cost Variable Cost Process A $20,000 $30Process B $30,000 $50Outside Supplier $0 $50
profit maximization price combinationA state owned company is providing electricity at the priceof $0.105and faces the demand for electricity P=1.255 - 0.001Q The company has acost function C(Q)=100.625 + 0.105Q The state sells the firm, now the firm’sonly goal is profit maximizationa What is the number of kilowatt hours of electricityproduced and what is the price that the company will charge?b Compute the price elasticity at the profit maximizingprice combinationc How much more profit will this firm make as a result ofprivatization
Please refer to the figure below. The equation for p = 105-0.005D 25,000+65D Y D (units sold) Determine the value of the maximum profit. О А. BD53,000 о в. BD52,500 O C. BD55,000 O D. BD48,000
Please refer to the figure below. The equation for p = 105-0.005D - 25.000+65D w D (units sold) Determine the value of the maximum profit. O A BD53,000 B. BD52,500 OC. BD55,000 O D. BD48,000
The following are data from a production, calculate; The Break-even point in terms of sales value and in . The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufacturing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per limit = P400
Price ($ per unit output) P1 P2 P3 P4 P5 Q1 Q2 Q3 Q4 ME S=AE MV Output
Q VC AVC TC ATC MC $0 $0 $30 $0 $0 1 $40 $40 $70 $70 $40 2 $100 $50 $130 $65 $60 3 $180 $60 $210 $70 $80 4 $330 $82.5 $360 $90 $150 If the firm can sell its product for $60, it will not sell 2 units and incur losses of $10 sell 1 unit and incur losses of $10 а. b. continue to operate in hopes the market price increases shut down and incur losses of $30 с. d.
a. A contractor, Susan Meyer, has to haul gravel to three building sites. She can purchase as much as 18 tons at a gravel pit in the north of the city and 14 tons at one in the south. She needs 10, 5, and 10 tons at sites 1, 2, and 3, respectively. The purchase price per ton at each gravel pit and the hauling cost per ton are given in the table below. Susan wishes to determine how much to haul from each pit to each site to minimize the total cost for purchasing and hauling gravel. Pit North South Hauling Cost per Ton at Site 1 2 3 $30 $60 $60 $30 $50 $40 Price per Ton $100 $120 Now suppose that trucks (and their drivers) need to be hired to do the hauling, where each truck can only be used to haul gravel from a single pit to a single site. Each truck can haul 5 tons, and the cost per truck is five times the hauling cost per ton given above. Only full trucks would be used to supply each site. Reformulate this assignment problem as an equivalent transportation problem with two sources…
An increase in the cost of heating and cooling a building may not reduce NOI if these costs can be passed along to the companies that lease the space. true of false