User Account

All Pages

Determine the economy of installing the new machines

Assignment Help Econometrics
Reference no: EM13202446

A small machine shop, with 30 hp of connected load, purchases electricity at the following monthly rates per hp of connected load.

First 50 kilowatt-hours(kWh) at $0.12 per kWh

Next 50 kWh at $0.106 per kWh

Next 150 kWh at $0.06 per kWh

Over 250kWh at $0.057 per kWh

The shop uses 2800 kWh per month.

a) Calculate the monthly bill for this shop. Also, what are the marginal and average costs per kilowatt-hour?

b) Suppose Jennifer, the proprietor of the shop, has the chance to secure additional business that will require her to operate her existing equipment more hours per day. This will use an extra 1200 kWh per month. What is the lowest figure that she mihght reasonably consider to be the "cost" of this additional energy? What is this per kilowatt-hour?

c) Jennifer contemplates installing certain new machines that will reduce the labor time required on certain operations. These will increase the connected load by 10hp, but since they will operate only on certain special jobs, will add only 100 kWh per month. In a study to determine the economy of installing these new machines, what should be considered as the "cost" of this energy? What is this per kilowatt-hour?

Reference no: EM13202446

Questions Cloud

Compute the marginal revenue of each unit of output : Assume that the short run cost and demand data given in the table below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of o..
What two conclusions can be drawn about collusion : Consider the following payoff matrix in which the numbers indicate the profit in millions of dollars for a duopoly based either on a high-price or a low-price strategy.  Firm A High-price Low-price What will be the result when Firm A chooses a low-..
What is the variability in q is explained by the equation : Obtain a linear function for demand in the form Q = A +bP using linear regression formulae (contained in the book/appendix)from these five price/quantity points: P= 20, 17, 15, 10, 8 Q = 2, 12, 16, 20, 30 What % of the variability in Q is explained b..
What rate of return did mrs whitney receive on investment : In 1990 Mrs. John Hay Whitney sold her painting for $71 million. The buyer also had to pay the auction house commission of 10%, or a total of $78.1 million. The Whitney family had purchased the painting in 1929 for $165,000.
Determine the economy of installing the new machines : Jennifer contemplates installing certain new machines that will reduce the labor time required on certain operations. These will increase the connected load by 10hp, but since they will operate only on certain special jobs, will add only 100 kWh p..
Calculate a detailed company cash budget : Calculate a detailed company cash budget for the forthcoming year. Summarize the sources and uses of cash, and identify the external financing needs for the forthcoming two year
Wjhat would affect the equilibrium real wage : Explain how each of the following would affect the equilibrium real wage, and equilibrium level of employment. a. A relaxation of immigration laws which leads to a large increase in the number of immigrants entering the country.
Why private sector customer demand reduces sales : Computer Products Corp. sells peripheral equipment used by both private businesses and the government. Due to a recession, Computer Product's sales have declined by 100,000 units and it now has 200,000 units of excess capacity.
What are the operating cash flows at the end : What are the operating cash flows at the end of Year 2 and calculate the capital structure weights which would be used to calculate the weighted average cost of capital and what are the operating cash flows at the end of Year 2

Reviews

Write a Review

Econometrics Questions & Answers

  Measure the marginal utility per dollar

Let MUA = z = 10 ? x and MUB = z = 21 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B-that is, x + y = 1..

  What is the owenership cost of the vehicle

Susan is considering buying a 2011 Smart ForTwo costing $21,635 and finds that the retaining values of the vehicle over next five years are as follows: Percent of the total value retained after 36 months: 28% Percent of the total value retained aft..

  Determine how many firms with average ceos

Consider an industry in which chief executive ocers (CEOs) run rms. There are two types of CEOs: exceptinal and average. There is a fixed supply of 100 exceptional CEOs and an unlimited supply of average CEOs. Any individual capable of being a CEO..

  What are the shapes of the avc and mc curves for firm

The firm believes that AVC varies with the level of output and wages. Alan Anderson, the economist in the research department of the firm, collects monthly data on output (the number of diskettes produced), average variable costs, and wage rates p..

  Is tom better or worse off after the changes

Tom is a utility maximizer with an income of $200/week, which he spends on two goods, food and clothing. The unit prices of food and clothing are $3 and $20 respectively. 1.) Draw a graph that shows Tom's choice using an indifference curve and his..

  Calculate the t-statistic for the hypothesis test

Calculate the t-statistic for the hypothesis test c.) Find the critical value and rejection region for a 5% significance level d.) Given your answers to b.) and c.), what do you say to the athlete's statement that he is better than Carl Lewis? 2. ..

  Demand elasticity of a widget at the monopoly price is what

A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. The demand elasticity of a widget at the monopoly price and quantity is what

  What is the sacrifice ratio in the economy

Find the natural rate of uemployment b. Graph the short run Phillips curve if the expected rate of inflation is 3 percent or 0.03 c. What is the sacrifice ratio in this economy d. If the central bank has a loss function of L(pi) = (pi)..

  Determine demand for flower bouquets in a suburban town

Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = 10 P - 5.

  What range of payments will the beekeeper accept

What are the highest and lowest payments from the writer that the beekeeper farmer team will accept for the sixth day Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept

  What is the average variable cost-avc as a function

John's Lawn Mowing Service is a small business that acts as a price taker. John's short-run total cost is given by STC = 0.1q2 + 10q + 50, where q is the number of acres John chooses to cut a day. Total fixed cost is TFC = 50 and total variable co..

  What is volume of production to minimize production cost

A company makes a piece whose income is 100-0.02n marginal and total cost is \(0.0002n^{2} 10000\) . Where n is the volume of production. What is the volume of production to minimize unit production cost, maximize profit and break even point

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd