Engineering Economy, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134838137
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 14, Problem 15P
To determine
Select the alternative.
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Prompt-
Questions 1 through 6 will ask you to consider the market for antibiotics. On November 23, 2022, the New York Times published a story titled “Flu and R.S.V. Hit the Holidays, Heightening Demand for Antibiotics and Antivirals”. You do not have to read the story to understand the setup of these questions. Please, carefully read each question to understand when these changes are introduced into the initial scenario. Here is what you should focus on to complete your analysis.
For this analysis, assume the antibiotic market is perfectly competitive, demand is downward-sloping, supply is upward-sloping, and production technology results in traditional U-shaped MC, ATC, and AVC
Finally, for all questions, assume market price is always greater than the minimum of the AVC
You will be using the same graph in all questions that require a graph (Questions 1, 3, and 5), with each question asking you to add new elements to the graph as part of your analysis.
QUESTION 1-
Assume that…
a) You need to take a trip by a car to another town that you never visited before. Therefore,
you are studying a map to determine the shortest route to your destination. Depending on
which route you choose, there are five other towns (call them A, B, C, D, E) through which
you might pass on the way. The map shows the mileage along each road that directly
connects two towns without any intervening towns. These numbers are summarized in the
following table, where a dash indicates that there is no road directly connecting these two
towns without going through any other towns.
Table 3:
Miles between Adjusted Towns
Town
A B
C
D E
Destination
Origin
40
60
50
A
10
70
B
20
55
40
с
50
D
10
60
E
80
i) Formulate a network model for his problem as a shortest path problem by drawing a network
where nodes represent towns, links represents roads, and numbers indicate the length of each
link in miles.
ii) Use the network form in i) to find the shortest path from origin to the destination.
Something that is perceived as a luxury rather than a need is something that brings pleasure. Worldwide, the majority of people view food, shelter, and water as requirements. Undoubtedly, indoor plumbing and electricity would be included on the list by many Americans. As opposed to being a luxury, internet connection is increasingly considered as a need. But is it actually essential for surviving? What then happens to those who don't utilize or have access to the internet? Could the expansion of e-commerce be impacted by how people view Internet connection as a need or a luxury?
Chapter 14 Solutions
Engineering Economy, Student Value Edition (17th Edition)
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- Questions 1 through 6 will ask you to consider the market for antibiotics. On November 23, 2022, the New York Times published a story titled “Flu and R.S.V. Hit the Holidays, Heightening Demand for Antibiotics and Antivirals”. You do not have to read the story to understand the setup of these questions. Please, carefully read each question to understand when these changes are introduced into the initial scenario. Here is what you should focus on to complete your analysis. For this analysis, assume the antibiotic market is perfectly competitive, demand is downward-sloping, supply is upward-sloping, and production technology results in traditional U-shaped MC, ATC, and AVC Finally, for all questions, assume market price is always greater than the minimum of the AVC You will be using the same graph in all questions that require a graph (Questions 1, 3, and 5), with each question asking you to add new elements to the graph as part of your analysis. QUESTION 2- Please refer to your…arrow_forwardA circus is scheduled to appear in a city on a given date. The profits obtained are heavily dependent on the weather which can be classified as “good" or" bad". The circus owners may choose to setup operations in a large open field that is centrally located or rent a small building to stage a small version of the circus. The small building is not expected to be adversely affected by bad weather – thus will not affect the circus for it is well secure and has covered parking for the guests. The following shows the profits of the options and states of nature: States of nature Decision alternatives Good Bad Set up in field Rent small building Probability $14,500 $5,000 P(G)=0.5 -$15,000 $4,000 P(B)=0.5 The circus owners may choose to delay the decision until the day before the event is due. At this time they can obtain the one-day weather report (free) which is usually reliable. This delay will however increase their set up cost by $1000.00 or if they choose to rent, the rental cost will…arrow_forwardImagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks show. Your staff survey your 400 citizens who say that they each value a fireworks show at $10. The fireworks show only costs $3,000 so you put on the show but when you ask for donations to pay for the fireworks you only receive $25 total. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. You staff's survey must have overestimated the value of a fireworks show. b The fireworks cost must have been greater than their economic benefit. The firework show suffered from the Tragedy of the Commons problems d The town's citizens were free-riders.arrow_forward
- Garret bought a leather football that cost $22. He then bought 10 more footballs for his friends. How much money did he spend for all 11 footballs? Show work by using slope-intercept form?arrow_forwardThe average price of gasoline in your neighborhood is $2.99 per gallon. Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.43 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial. No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. Yes, the lower price of gasoline at the rivalarrow_forwardSuppose that you are trying to make a decision regarding the purchase of a new machine for the plant that you are working on. You have three criteria to consider. First of all, in these hard times, the price of the machine is very important for you. On the other hand, the throughput rate is also very important for you since you are anticipating higher demand in the future and you should have enough production to satisfy the customer demand. Finally, energy consumption is an issue that your company is sensitive to not only for the cost issues but also green production seems to be very important particularly for your customers. You have decided to adopt the additive utility function for the overall utility from these three criteria. Thus, the next thing for you is to determine the relative weights of the criteria. Suppose you used Swing Weighting and obtained the following table as the result of the process. What is the weight of the price?arrow_forward
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