User Account

All Pages

Valuable utility company in the county

Assignment Help Business Economics
Reference no: EM133063845

You are the owner of a utility company that supplies water to residents and businesses in an isolated town in South Africa. There are a handful of other utility companies in the area, and you compete aggressively with each other.

The only source of water is a single aquifer-a "lake" of underground water-which has provided water to the area for decades. In previous years, the local government has limited each company to 4 pumps in the aquifer. However, as both the population and the demand for water is increasing, the town is lifting these limitations.

Your pumps have been operating at capacity for quite some time now, so you are happy to hear the limits have been eliminated. This feels like a great opportunity to grow your business. However, given how competitive the industry is, you know that you will need to move quickly. Your objective is to be the most valuable utility company.

You will need to weigh all sorts of factors in determining how many pumps to buy and how much water to pump from the aquifer, including the cost of additional pumps and the quality of the water that you wish to provide. Filtered water is more costly to provide, but you can also charge a higher price for it.

What strategy will you pursue? What do you think is the key to becoming the most valuable utility company in the county?

Reference no: EM133063845

Questions Cloud

What was the beginning value of retained earnings : If net income for the year was $115,000 and a preferred stock dividend of $35,000 was paid, what was the beginning value of retained earnings
Opinions about the role of finance and economics : - What are your opinions about the role of finance and economics vis-à-vis politics?
What are the expected cash collections of sales in october : Historically, cash collection of sales has been as follows: 65% of sales collected in month of sale. What are the expected cash collections of sales in October
Role of finance and economics : - Finally, what are your arguments for and against the regulation of the financial industry?
Valuable utility company in the county : You are the owner of a utility company that supplies water to residents and businesses in an isolated town in South Africa. There are a handful of other utility
Was each strategy successful : Explain each strategy and give an example of an organization that has used each type of strategy. Was each strategy successful? Why or why not?
Most import and exports products of hawaii : "Most import and exports products of Hawaii" use economic concept like demand and supply, compare to mainland.
Determine the principal amount of the lease obligation : On January 1, Year 1, George Corp. entered into a 7-year lease agreement with Jordan, Inc. for equipment. Determine the principal amount of the lease obligation
Physician immune from liability : Assume you are a leader in a healthcare organization. Summarize what you would propose the reporting rules should be for your organization on reporting suspecte

Reviews

Write a Review

Business Economics Questions & Answers

  If the treasury were to fill old bottles with banknotes

J. M. Keynes wrote.” If the Treasury were to fill old bottles with banknotes, Bury them in disused coal mines, and leave it to private enterprise to dig the notes up again, there need be no more unemployment and the real income of the community would..

  Which country would benefit from trade

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. If these countries were open to trade, which country would export shirts? Which country would benefit from t..

  Differences in between securitization and selling used cars

"Loans are just like used cars. If you see an ad in the paper for a used car, you have to wonder, why is the owner selling it? Maybe there is something wrong with the care that is hard to see. As a result, when you approach the seller, you will want ..

  What advantages do multi-dimensional graphs

Graphs are normally two dimensional in their use of an x and y axis. What advantages do multi-dimensional graphs have in terms of using three dimensional representations (x, y and z graphs or even additional axis representations) and do these present..

  What is the firms current profit

At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the ..

  Analyze the digital mobile device and defense industry

Complete a detailed industry analysis for the following 2 industries: Analyze the digital mobile device industry versus the defense industry in terms of

  What is the explicit cost

What is the explicit cost? What is the implicit cost? What is Joe economic profit in the first year?

  Early racial segregation along with gender inequality

Explain how has the early racial segregation along with gender inequality established by white men helped in the formation and foundation of U.S. Capitalism?

  Are wages and price flexible or inflexible

What is the basic difference between Classical and Keynesian economics? What role does government play in the Keynesian model? What is a recessionary gap, and how can government work to correct this? Are wages and price flexible or inflexible? Explai..

  History about the minimum wage

Can someone write a brief background/history about the  Minimum wage – California initiative to raise to $15 an hour this November. This is Politcial Science related. ( Can you please elaborate on this and if you can so kindly write 2 or at least one..

  Supply and demand curves in market are described

Assume that the supply and demand curves in a market are described by the following equations. Supply: P = 5+5 · QS Demand: P = 86. Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the pric..

  Determine the value of an accurate forecast in terms

Identify three business components (within the broad categories of people, process/facility, or technology) that presented problems for Shouldice Hospital in the late 1940’s. Define steps that your startup team might take to avoid similar problems wh..

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