GIVE CLARIFICATION WHERE NECESSARY

Answer all questions correctly.

A)Impact of New Technology in the Picture Frame Shop As the owner of the picture frame shop, suppose you decide to rent a machine for $18.000 annually that will speed up the production of framed pictures. Using this machine, you simply key in the dimensions needed to automatically cut the frame, glass, and matting for any picture frame size. Automating the production process dramatically increases the output of framed pictures and reduces losses in miss-cut glass and mats.

As shown in Figure 13-10, this new technology increases annual fixed costs from $32.000 (dashed blue line AB in Figure 13-10A) to $50,000 (dashed red line UV in Figure 13-10B). However, it has the benefit of lowering variable cost from $40 to $20 per unit. The variable cost with the new machine is depicted by the flatter orange wedge WZV in Figure 13-10B. Compare this to the variable cost without the new machine, the larger orange wedge CFB in Figure 13-10A.

Assuming these same prices, fixed costs, and variable costs for your shop, calculate the break-even point:

(1) without the new machine and

(2) with the new machine

B)The demand function is given by x = A p^-Y with x giving the demand, p the price and a and as positive parameters. a) Derive the price elasticity of demand, . What is the economic meaning of the price elasticity of demand? What is elastic, what is inelastic demand? b) Denote revenues as a function of demand x and price p. How do revenues change as a reaction to an increase of the price, if demand is inelastic? c) Is the good in focus a Giffen good? Explain your answer both verbally and analytically.

C)As the healthcare organizations provide different kinds of services, they need to follow the principles of marketing in order to market the healthcare services. By the mid -1980s, marketing departments had been established in most of the large healthcare organizations in the West. By early 1990s, market orientation at the level of the firm has been achieved to a substantial extent in the healthcare industry. But, infiltration of such customer orientation down into the personnel involved in providing healthcare services has not been observed remarkably. No doubt, healthcare organizations like health insurance, pharmaceuticals, and medical supplies, which are more in retail business of healthcare products, had been found registered themselves with practice of incorporating the marketing activities, but, so far as health services providers are concerned, they still have not resisted for consumer -oriented services. It is found to be more true with developing country like India as her culture found it hard for a long time even to imagine an equivalent of the "customer is the king" philosophy especially in the healthcare services. The initial marketing efforts of the healthcare industry were on few of the marketing activities, such as, relationship development among the physician, community services, and public relations. The philosophy of customer centralism is found to be observed more from the mid -1990s with an increased over-supply of healthcare facilities along with other environmental compulsions. The healthcare practitioners had initiated providing more convenient customer services and have moved far beyond providing the core healthcare services of mere prevention of or cure from a disease by developing better marketing mix offerings. Yet, in the initial period, there indeed was an unseen and lethargic approach towards need for such development and after initiation, healthcare practitioners have begun to consider customer relations executives and the hospitals as hospitality undertakings. The smart hospitals follow a patient friendly approach to provide service alike hotels and have changed traditional belief of hospitals where people would like to stay away so far as possible.

Marketing of services is confronted with many problems.Discuss this with the current COVID19 pandemic