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- 4-5 Processing Insurance Claims Your insurance firm processes claims through its newer, larger, high-tech facility and its older, smaller, low-tech facility. Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs. Each month, the low-tech facility handles 2,000 claims, incurs $16,000 in fixed costs and $24,000 in variable costs. If you anticipate a decrease in the number of claims, where will you lay off workers?There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. Assume the bar owner has the right to hire as many bands as she likes. Iftransaction costs were $90, split between the bar owner and the tenants, how manybands would play? What would social welfare be? A. Three bands would play and social welfare would be ‐100.B. Two bands would play and social welfare would be 75.C. Two bands would play and social welfare would be ‐15.D. No bands would play and social welfare would be 0.E. Three bands would play and social welfare would be ‐190A negative cash balance requires an increase in payments and decrease in cash receipts. True or False True False
- There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar like to listen to rock‐n‐roll music, and they love live bands. If the bar owner brings bands in to play music on a Saturday night, she will make a lot of money. However there are tenants in this building who get annoyed by the loud music. The benefits/costs to the owner/tenants of having zero, one, two or three bands on a Saturday night are listed below. If the tenants have the right to be free of loud music enforced through aproperty rule, how many bands will play in Rock‐n‐Roll Bar on a Saturday night? A. ZeroB. OneC. TwoD. ThreeE. It depends on transaction costsa. Why are Moser Baer customer’s moving towards VMI arrangement and what benefits and risks are involve? Explain BrieflyUtilities Some rental units have certain expenses included with the rent. Water, electricity, and heating are often referred to as utilities. Some tenancy agreements require the tenant to pay for utilities. 7. a) Bianca and Sarah rent a semi-detached house. They pay for utilities as well as rent. Complete the chart to determine their estimated annual cost for utilities. Average Billing Frequency Estimated Amount Billed Annual Cost Item Natural gas Monthly $118 Electricity Bi-monthly $140 Water Quarterly $120 Estimated Total Annual Cost b) A news report claimed that utility costs would rise by an average of 10% next year. Estimate how much Bianca and Sarah can expect to pay for utilities next year. 0
- Shane teaches guitar lessons. The graph below shows the comparison of his expenses and revenue for one month. r ($) L -1000 000 -600 200 Number of Lessons Expenses Revenue How many lessons must he teach to break even?True/ False The value of an investment can be determined by the rate or return.True/False/Uncertain
- 4. Anentrepreneurintends to sell his product for 6.4$ each. The daily cost or expenses can be expressed as x+9.1+.11x^2, wherexis the no. of product sold daily. Find the no. of products that will maximize the profit per day.Pls help ASAPRevenue and Costs ($) TC P61 Given TFC = $40.00 Q1 = 30.00 Q2 = 40.00 TR P6 P5 Q3 = 50.00 Q4 = 80.00 Q5 = 86.00 P4. P1 = $40.00 P2 = $50.00 P3 = $60.0o P4 = $150.00 P5 = $200.00 P6 = $210.00 P61 = $320.00 P3 P2 P1 Q1 Q2 Q4 Q5 Q3 Exhibit TR-TC Output (Q) Refer to Exhibit TR-TC for a typical competitive firm. At an output level of Q5, the firm's losses is about O $100.00 O $90.00 O $110.00 O $120.00