Thomas Money Service Incorporated Business Analysis Leslie (Scott) McCrory ECO/561 Economics March 14‚ 2011 Facilitator David Francom Thomas Money Service Incorporated Business Analysis Executive Summary Thomas Money Service Incorporated is a consumer finance company‚ and conducted business successfully for 71 years. The organizations primary financing services pertained to commercial real estate and business loans. In 1946‚ the company decided to incorporate a subsidiary business to
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(4+6)*4/2 = 20 On the other hand‚ payment is 2*5=10 dollars‚ so consumer surplus will be = 10 Thus “half price” gives more surplus. 2. cost minimizing manner‚ marginal product of typewriter/marginal product of word processor=rent of typewriter/rent of word processor 50/500=0.1 1/50= 0.02 (marginal product of typewriter/marginal product of word processor) does not equal to (rent of typewriter/rent of word processor). Hence Temporary Services is not utilizing the typewriters and word processors
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BUECO5903 Business Economics Assignments Part A – Microeconomics Question 1: (a) Explain the impact of external costs and external benefits on resource allocation; (2.5 marks) The external cost and external benefit is a cost or benefit imposed on people other than the consumers and producers of a good or service. External cost is negative and may be detrimental to the third party‚ conversely‚ external benefits is positive and beneficial to third party. Because of this concept‚ it
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other firms in the industry and it is possible for consumers to tell one firm’s product from another. Gaining abnormal profits is possible in short run but not in long run in the monopolistic competition market 3) In monopolistic competition Marginal Curve (MC) is below the Average Revenue curve (AR). Consumers have more additional benefit than the additional cost of production. Not allocatively efficient Monopolistic Competition Firms may not produce at the lowest possible cost (not productively
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1. False. In order for a firm to maximize profits‚ marginal revenue must equal marginal cost. The statement is true if it were specifically being applied to long-run equilibrium under perfect competition. If it is not being applied to that specific instance then the statement is false as profit maximization takes place when marginal revenue equals marginal cost. 2. The Miami plant should continue to operate because it only loses $60‚000 per month compared to possibility of losing $68‚000 (its
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Which private companies can be regarded as monopolists in Hong Kong? Do they charge higher prices? What do you mean by ‘higher prices’? Higher than what levels? P.7 Test yourself 19.1 Given the following information‚ find the total revenue and marginal revenue at different output levels: |Price ($) |Output (units) |TR ($) |MR ($) | |50 |1 | | | |40 |2 |
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barriers to entry. SECTION: 1 OBJECTIVE: 1 4. Most markets are not monopolies in the real world because a. firms usually face downward-sloping demand curves. b. supply curves slope upward. c. price is usually set equal to marginal cost by firms. d. there are reasonable substitutes for most goods. ANSWER: d there are reasonable substitutes for most goods. SECTION: 1 OBJECTIVE: 1 5. Patents grant a. permanent monopoly status to creators of scientific inventions
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Sample Final Exam – Marketing Management – Semester‚ Year Name _____________________ Social Security # ________________ Please read all questions carefully. You have three hours to complete this exam so please take your time and double check all your answers once you are finished. Make sure your name and social security number are on both the exam form and the answer sheet (scantron). Caution: This is only a sample exam. It is intended only as a guide to the style of the
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first degree price discrimination is attempting to extract all the consumers’ surplus from its customers’ as profits. In general graph of monopoly‚ one of the most interesting things to look at is marginal revenue. While demand curve indicates the relationship between the quantity and the price‚ marginal
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Thomas Money Service Business Proposal Thomas Money Service Inc. established in 1940 with the intent of providing small loans for household needs. The success of the company has led them to expand their services which include business loans‚ business acquisition financing‚ and commercial real estate loans. In 1946 Thomas merged with a company that specialized in equipment financing called Future Growth Inc. This merger‚ although was a risky move was a proven success for The company as they became
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