Entries by Hannah Wangui

Steve is a honours student in economics who has to finish his dissertation within 100 days, that is, at time t = 1; t = 2; t = 3; :::; or t = 100

November 27, 2020 in /by

3. Steve is a honours student in economics who has to finish his dissertation within 100 days, that is, at time t = 1; t = 2; t = 3; :::; or t = 100. It takes one day to finish the dissertation, and on the day Steve does so, he incurs an instantaneous dis-utility […]

 

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Individual Problems 4-4Suppose the average costs of all potential suppliers are as follows:UnitsAverage Total Cost Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part. Also assume that, because the part is specialized, potential suppliers do not yet possess the machines and factories needed to produce it and that overhead expenses involved in production have yet to be incurred. (Dollars Per Unit)90,0003100,0002 True or False: The requesting company can solicit lower bids by requesting 100,000 units as opposed to 90,000. True False

November 27, 2020 in /by

Individual Problems 4-4Suppose the average costs of all potential suppliers are as follows:UnitsAverage Total Cost Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part. Also assume that, because the part is […]

 

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Your insurance firm processes claims through its two facilities:

November 27, 2020 in /by

Your insurance firm processes claims through its two facilities: facility A and facility B. Each month, facility A handles 9,000 claims and incurs in $162,000 fixed costs and $180,000 in variable costs. Each month, facility B handles 11,000 and incurs $95,000 in fixed costs and $143,000 in variable costs. Hint: Be careful not to commit […]

 

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