See the attachments.
The question involves the examination of a possible change in operating conditions that does not involve a change in capital outlay. Hint first determine is this an annual cost only or does present value need to be accounted for.
A concentrator with a nominal 12,000 tonne per day capacity operates 360 days per year. The grinding circuit consists of three parallel circuits. Each circuit needs to be shut down for relining at four monthly intervals. The current method of relining takes five days to complete and costs $ 30,000 in consumable supplies. A proposed alternative method is under investigation and would involve a two day shut down and cost $ 190,000 in consumable supplies.
Should the alternative method be used if the following conditions apply:
1 Milling reserve, a minimum of 9 years supply at a head grade of 1.2 %
2 Performance of the concentrator at 1.2 % head grade is 92%, with the concentrate grading at 28% of the mineral (on a dry basis) and 10% moisture.
3 The selling price is not likely to go below $ 1.50 per kg.
4 The operating costs below are applicable
General overheads fixed at $12,000 per day
Mining fixed costs $40,000 per day
Mining variable costs $2.00 per tonne milled
Milling Fixed costs $ 24,000 per day
Milling variable costs (grinding media and power) $1.00 per tonne milled.
The problem is on ore extraction process with few in-built intelligent tricks. Attached please find the Excel sheet which shows you step by step deduction of ...
The solution examines the possible change in operating conditions that does not include change in capital outlay.
Managerial Economics elasticity in supply and demand
1.- Consider the supply and demand of taxi rides at night. The article discusses policies that are aimed at that market. Given the desired impact of the policies, what do you think are the market conditions that the government is trying to correct?.
2.- The article discusses the very strict test which is required for all taxi drivers. Explain what you think this would mean for the supply ( and shape or slope of the supply curve) for taxi rides in London.
3.- Consider the discussion of demand elasticity. Given your answer to question 2, how would you characterize the supply elasticity of this market? Think specially about the shape of the supply curve. What are the ramifications for the market?
4.- What could be the impact on the supply curve of changing the exam (for example, making it "less costly" for potential taxi drivers to take)? Show both supply curves on a graph and discuss the impact of a change in price. How is this related to supply elasticity?.
5.- Now turn to demand elasticity. One proposal from the article is to allow mini-taxis more freedom to compete with the regular taxis. How would this impact the elasticity of demand? Explain. What are other possible substitutes to taxis?
6.- Cab drivers have been against the proposal to increases fares at night, the article quotes one trade paper as saying that the price increases were " Appallingly handled." Assume the cab drivers are responding to the impact they believe such a price increase will have on total revenue. Explain what must be true about the demand elasticity.View Full Posting Details