complete the following two applied problems:
Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for the product is expressed as Q = 5000 — 25P where Q is the number of vacuum cleaners per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by TC = 1 500 + 20Q + 0.0202.
Show all of your calculations and processes. Describe your answer for each question in complete sentences, whenever it is necessary. What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P (price) and Q (output). Then, plot the MC (marginal cost), D (demand), and MR (marginal revenue) curves graphically and illustrate the equilibrium point. How much economic profit do you expect that Robert’s company will make in the first year? Do you expect this economic profit level to continue in subsequent years? Why or why not?
Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Last year, GGC’s price for the typical lawn system was $1,900 compared with BLG’s price of $2,100. GGC installed 9,960 systems, or about 60% of total sales and BLG installed the rest. (No doubt many additional systems were installed by do-it-yourself homeowners because the parts are readily available at hardware stores.)
GGC has substantial excess capacity—it could easily install 25,000 systems annually, as it has all the necessary equipment and can easily hire and train installers. Accordingly, GGC is considering expansion into the eastern suburbs, where the homeowners are less wealthy. In past years, both GGC and BLG have installed several hundred systems in the eastern suburbs but generally their sales efforts are met with the response that the systems are too expensive. GGC has hired you to recommend a pricing strategy for both the western and eastern suburb markets for this coming season. You have estimated two distinct demand functions, as follows:
Qw =2100 — 6.25Pgw + 3Pbw + 2100Ag – 1500Ab + 0.2Yw for the western market and Qe = 36620 – 25Pge + 7Pbe + 1180Ag – 950Ab + 0.085Ye
for the eastern market, where Q refers to the number of units sold; P refers to price level: A refers to advertising budgets of the firms (in millions); Y refers to average disposable income levels of the potential customers; the subscripts w and e refer to the western and eastern markets, respectively: and the subscripts g and b refer to GGC and BLG, respectively. GGC expects to spend $1.5 million (use Ag = 1.5) on advertising this coming year and expects BLG to spend $1.2 million (use Ab = 1.2) on advertising. The average household disposable income is $60,000 in the western suburbs and $30,000 in the eastern suburbs. GGC does not expect BLG to change its price from last year because it has already distributed its glossy brochures (with the $2,100 price stated) in both suburbs, and its TV commercial has already been produced. GGC’s cost structure has been estimated as TVC = 750Q + 0.005Q2, where Q represents single lawn watering systems.
Show all of your calculations and processes. Describe your answer for each item below in complete sentences, whenever it is necessary.
Derive the demand curves for GGC’s product in each market. Derive GGC’s marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGC’s demand, MR, and MC curves for each market. Derive algebraically the quantities that should be produced and sold, and the prices that should be charged, in each market. Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market. Add a short note to GGC management outlining any reservations and qualifications you may have concerning your price recommendations.
Administration System and Corporate Governance The administration framework and administration of every single association is responsible for the upkeep of the association's quality and survival in the hardened rivalry in the business world. The part of the administration forced by the association overall ought to dependably be receptive for the events of changes keeping in mind the end goal to modify and adapt to the gigantic advancement that are going on in the inner and outside condition of the association. With the continually evolving condition, numerous individuals particularly those in the working association wind up ordinarily adjusting. This is on account of progress can get numerous change and improvement distinctive parts of competency. From multiple points of view, change can make work less demanding, prepare for future advancements or for the most part enhance individuals' lives. Likewise, change has been adjusted by different work associations for fluctuated reasons. Essential changes in the comprehension and administration of corporate administration and its effects on organizations have been created in the previous 10 to 15 years. Different analysts, experts and policymakers presently recognize that corporate administration and its effects on organizations can be conceptualized from an utilitarian point of view and that suitable intercessions include the advancement of elective measures to adapt up. It was likewise noticed that the foundation of a helpful domain for learning and preparing as a basic segment of corporate administration have served successfully in executing hierarchical change methodologies for change. At introduce, this philosophical move has reached out to different settings, including multinational organizations and associations. Chiefs here have perceived that a few representatives don't have the right stuff and conduct collections important to adapt to the numerous desires and difficulties of corporate administration. Subsequently, these representatives may tend to stay satisfied with their average exhibitions as their elective method for alleviating these desires. Corporate administration relates to the arrangement of strategies that are built up so as to make impact in the way in which an association or organization is overseen, administered or worked. The execution of corporate administration prompts the proficient and viable usage of the arrangements and errands important to fulfill an association's clients, representatives, and administration. It likewise centers around the cautious administration of the procedures engaged with the connections among every one of the partners included (Bhattacharya, 2000). As a rule, little organizations don't generally have the abilities to execute corporate administration. Rather, these organizations take part in exercises that different schools of administration ordinarily connect with the execution of corporate administration. These exercises incorporate the foundation of standards, arrangements for basic leadership, checking and assessment. Nonetheless, corporate administration manages all tasks done inside organizations and associations. Exercises, for example, the administration of duties, the control of activities, coordinations and assessments are frequently related with corporate administration. A lot of accentuation lies on the proficiency and adequacy of procedures. Thusly, corporate administration incorporates the examination and administration of inner procedures. The Body Shop will be the model business element that will be utilized in this examination in view of their history in corporate administration. Organization Background A known British chain of corrective stores called "Body Shop" which is discovered everywhere throughout the world shows colossal accomplishment in earlier years is additionally the organization The Body Shop International plc. In reality, The Body Shop consented to a £652 million takeover offer by a French beauty care products aggregate L'Oréal on 17 March 2006. The Body Shop was established by Anita Roddick, recognized for offering its own line of items not tried on creatures, and delivered in a biologically maintainable approach (wikipedia, 2006). The Body Shop goes for practical development as a wide market pioneer in beauty care products and in addition for fragment authority. In the two cases, the brands of The Body Shop will have a vital impact. The Body Shop can set up its expansive administration as a rule by converging with other solid beautifying agents organizations and their items, which are then consolidated into another, bigger organization. Offering preparing to its workers, enhancing the organization activities, and the presentation of new magnificence items and advances at that point strengthens the places of the different results of The Body Shop. This basically results in economies of scale that can make a dispersion organize for the two its neighborhood and universal items. In the event that a market is as of now in the control of different organizations, The Body Shop gives its consideration towards the advancement of a top notch section with its different excellence items. Discourses Any business association in a general sense exists since it has certain obligations to satisfy for the general population in the network and the different substances including it. The association has its human substance extending from the staff, to the chiefs, governing body, partners, providers et cetera. Every one of these gatherings have their own arrangement of capacities that add to the assurance of the business objectives, the conveyance instruments of merchandise and ventures, and the operational examples inside the association. Moreover, business associations are a piece of the bigger society where the business sectors and customers are focused on and determined. The multifaceted nature of the interior and outside surroundings of the business requires vital considerations and choices with a specific end goal to guarantee the successful and ceaseless undertakings of the association. The general administration of the inward and outside undertakings of the association is the thing that essentially frames corporate administration. Essential Definitions 1) Corporate Governance - relates to the arrangement of approaches that are set up with a specific end goal to make impact in the way in which an association or organization is overseen, administered or worked (Bhattacharya, 2000). 2) Company Performance - can be estimated as far as the productive and powerful usage of the arrangements and undertakings important to secure the basic merchandise or administrations at the most ideal aggregate cost of possession, prompting the general fulfillment of an association's clients, representatives, and administration (Booms, 1981). Part of Executive Directors Official executives have the essential part to make particular recognizable pieces of proof of all the conceivable wellsprings of assessment data which incorporates organization execution. This is on the grounds that beside the perceptions of the quick chiefs, organization execution assessment data can at present originate from an assortment of different sources, including the representatives, subordinates, and work items (Einsestat, 2001). For instance, at whatever point The Body Shop uses organization execution data from people other than the prompt manager, the administration educates the workers of the conceivable sources toward the beginning of the organization execution cycle, where they get their organization execution designs. What's more, these official chiefs are the general population who build up their organization's execution designs. The designs are marked by the representatives and after that passed on to the administration for endorsement. They ensure that organization execution designs are finished and sufficient before marking the structures (Gonzalez, 2003). Official executives additionally talk about the organization execution designs with the workers in an unmistakable and sorted out way. By and large, discourses are directed inside 30 long stretches of the beginning of the organization execution cycle. Part of Non-official Directors Non-official chiefs archive their organization's execution and give input to the official executives every now and then all through the organization execution cycle. Documentation ordinarily happens as reminders, and these are held in the non-official chiefs' private records. All things considered, these chiefs additionally have the expert to decide substandard or unsatisfactory organization execution (Galpin et al. 2002). They ordinarily address minor or negligible organization execution issues through organization execution advising and training. The Body Shop's Corporate Governance It tends to be said that the organization has a decent system that has been built up keeping in mind the end goal to manage diverse corporate issues. Truth be told, there is normally a legitimately organized program that is additionally strengthened by organization approaches and different techniques for the best possible direction of the chiefs in their day by day obligations. Thus, the organization has an unmistakable reference manual for its business activities and corporate administration. The Board of Directors which manage the organizations and the basic leadership schedules and the budgetary part of things, keeps watch. What's more, this incorporates the upkeep of the norms with respect to corporate administration in the enterprise's diverse parts. The Board is comprised of ten chiefs; two are official while six are non-official. Along these lines, there is a reasonable division of duties and different undertakings among them. And keeping in mind that the non-official chiefs are free from the others, they are as yet ready to contribute their experience and learning amid Board dialogs. In actuality, The Board is accountable for looking after the organization's tasks, resources, and its investors. All things considered, the board intends to work with these components with expectations of amplifying execution. Along these lines, The Board is in charge of the conclusion of spending plans and vital plans. What's more, keeping in mind the end goal to guarantee the association's skilled activities, The Board directs a month to month audit of the organization's organizations in connection to its monetary developments. Besides, there is an organization law that obliges The Board of Directors to carefull>GET ANSWER