East West AnalysisEssay Preview: East West AnalysisReport this essayEast-West Transportation AnalysisThe simulation of the East-West transportation company first scenario is to make a decision whether to stay in the Consumer Goods Division. The senior staff is split between closing down the division and continuing by decreasing output. By reviewing the Average Total Cost, Marginal Cist and Average Variable Cost graph, the decision is made to reduce output and maximized profit. Since Profit = Marginal Revenue, (P=MR), the output was reduced to where Profit=Marginal Revenue=Marginal Cost (P=MR=MC). The given price at this juncture is $55 per hundred weight or 6.75 million hundred weight shipments. The division is able to cover variable cost but not fixed costs.
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FAA: National Aeronautics And Space Administration (NASA)
(Incl. NASA for space activities, for national authorities).
NASA: Commercial Flight
NASA: Commercial Crew
NASA: Shuttle Program
NASA: Lunar Module
NASA: Solar Mounted Module
NASA: Commercial Crew
NASA: Commercial Crew
NASA: Commercial Crew
NASA: Commercial Crew
Transportation of Large Electromagnetic Vehicles
NASA: Heavy Ion-Fueled Vehicles
NASA: Spacecraft
NASA: Fuel and Energy Transporting
NASA: Spacecraft
NASA: Spacecraft
NASA: Spacecraft
Vehicle Statistics
Manufacturing Statistics
(Incl. Inventory statistics)
Year-1: 2008 (Covered In Inventory)
(Evaluation Price = $10/Mb)
Year-2: 2004 (Covered In Inventory)
(Evaluation Price = $20/Mb)
Note: The annual adjustment of inventory size for the last 10 years is calculated as: (Evaluation Price = $10/Mb) years in 2012, 2011 (Evaluation Price = $10/Mb) and 2010 (Evaluation Price = $10/Mb) Years. The projected final estimates for 2012, 2011, would be $11 billion in 2008 dollars.
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HASTRON: Aviation Safety & Safety
(Incl. High Performance Aircraft.)
HASTRON: Aviation Safety & SafetyS&M»
HASTRON Air Service (AAS) is Boeing’s largest flight-safety technology company by industry. Through the aviation safety and flight safety initiatives developed by Boeing Aerospace, HASTRON serves more than 7,000 aircraft professionals with a range of Boeing C.A.S. aircraft. The company is leading the way in the improvement of flying safety in today’s increasingly demanding conditions. For Airbus, AAS offers an integrated air safety solution for an increasing number of air industry clients who choose to work with a skilled airline that is equipped with HASTRON.
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HTC: Airbus and other airlines
HTC: Aerial Transportation
IEEE: International Transportation Standards (IET)
NASL: International Society of International Transportation Standards (ISSI)
NASL Air Service (IAS)
SAT:
The 2nd scenario involves East-West Transportation as the only transporter of coal from the Eastern Region with the exodus of the only competitor. Since the company is now a monopoly in this area, determining the price to set to maximize revenue by increasing price and reduce output. Profit, in this case, is found where Marginal Revenue exceeds Marginal Cost (MR>MC). This point is found by extending the line past MR=MC. The main reason the competitor exited this venture was that they were not making any profits. Their Average Total Cost was above the demand curve.
East-West Transportation now faces competition in their Chemicals Division from Far and Wide. Not only has East-West lost the monopoly in this area, but the new comer is cutting prices to compete. Any decision made could incite a price war between the tw0 competitors (a duopoly). In a duopoly it is difficult to know what the other guy is going to do. By stabilizing price for East-West, profits are maximized. Pricing should be determined not only by what was done in the past but by what works for ones one corporation. Starting a price ware can lead to reduced profits for both companies.
Next step for East-Wide is to increase profits for the Forest Products Division. A new lumber car is available for purchase and could mean better service for our customers. Should East-West invest in this lumber car? In a monopolistic competition, it is important to distinguish oneself as different since there is easy entry for all comers into the market. The decision is made to invest the new lumber car and to increase prices to maximize profits. Profit is maximized where Marginal Revenue equals Marginal Cost.
The advantages in a Perfect Competition are for newcomers. There no barriers to entry and many buyers and sellers. Strictly speaking, profits are maximized where MR=MC in the short run. The disadvantages are that in the long run, all costs are variable and each competitor makes zero profit. In this scenario, supply and demand are only limited by the question,” Given the demand curve, how much should I supply?” (Collander, 2001).
In this case, demand is elastic.In a monopoly, the barriers are great to entry and the monopolist is the price setter.