Always Round Tire Hires Plain Truth Advertising to Write Copy

question 13

Essay

Always Round Tire hires Plain Truth Advertising to write copy for its newspaper advertisements.Always Round has a demand for advertising of MB = 400 − 2S where S is the number of hours that Plain Truth works.If Plain Truth has a fixed supply cost given by MC = $150 per hour,what are the number of hours that Always Round purchases from Plain Truth? Now,if the copy writers are slackers and only deliver 100 hours of work each week,and if the each company must spend $1,250 in monitoring and bonding costs,what is the surplus and residual loss in this environment?

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Definitions:

Lysosomes

Organelles in cells that contain enzymes to break down waste materials and cellular debris.

Peroxisomes

Organelles found in virtually all eukaryotic cells that contain enzymes involved in the detoxification of harmful substances and in metabolic pathways.

Vesicles

Small structures within cells that contain fluid or cytoplasm and are used for storing or transporting substances.

Enzymes

Proteins that catalyze and speed up chemical reactions in the body without being consumed or altered in the process.