Abc corporation has three service departments with the following costs and activity base:

service department cost activity base for allocation graphics
production $200,000 number of copies
accounting 500,000 number of invoices processed
personnel department 400,000 number of employees

abc has three operating divisions, micro, macro and super. their revenue, cost and activity information are as follows:
micro macro super
direct revenues $700,000 $850,000 $650,000
direct operating expenses 50,000 70,000 100,000
number of copies made 20,000 30,000 50,000
number of invoices processed 700 800 500
number of employees 130 145 125

what is the service department charge rate for the personnel department?

(a) $2,758
(b) $3,200
(c) $1,000
(d) $3,077

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Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?