Industry Analysis

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Business Finance

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No of Words: 2000 Words

Referencing Style: Havard Referencing

Number of References: 20


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Explanation & Answer

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Industrial Analysis 1

INDUSTRIAL ANALYSIS
Name

Course
Professor
University
City, State
Date

Industrial Analysis 2
Industrial Analysis
Industrial Brief
From the case under evaluation, the government is to undertake the program for
public works, repairing of bridges and upgrading the bridges in the city of the particular
country. According to the postulations made by the ministry of transport, the public will
obtain funds from the taxi corporations through incepting of taxes on the taxi
companies. The primary rationale of the taxes incepted by the corporation is to ensure
that the tax operators obtain benefits from the construction of well-maintained bridges
and roads. For this reason, the tax operators are supposed to contribute to their upkeep
and wellbeing. According to the ministry of transport, there are two competing
proposals, and the ministry of transport is tasked with the responsibility of choosing one
proposal. In the first proposal, a tax of 2.40 per trip would be levied on the tax
corporations a fact that would increase the cost of the tax companies by $2.40.
Regarding the second proposal, the tax corporations would be required to levy a tax of
$35,000 in each day. Each corporation operating in the tax industry would be required
to remit such a tax despite the number of trips made in each day. Regarding the
information given on the particular industry, the overhead costs incurred by Taxi
Corporation regardless of the number of trips made per day is $100,000 per day. The
driver and wages benefit incurred by the tax corporation are $8 per trip. The cost of fuel
is $ 1.50 per trip. The maximum vehicle wear and tear costs amount to $4.50 per day.
The minimum wear and tear costs of the taxi corporations amount to $3 on every trip.
The total costs incurred per trip amount to (100,000+8+1.50+4.50+=$100,014 per trip.

Industrial Analysis 3
When the wear and tear costs are minimum the total amount of costs incurred amount
to $100,011 per trip
The total cost functions for the two situations will be as follows;
TC=100.014*q
TC=$100,011*Q
Q is used to refer to the number of trips made.
The ministry of government should opt for the second option since it would
provide an opportunity for the ministry to obtain more funds for its project as compared
to the embracement of the first proposal. Ideally, the total cost that would be incurred if
the second alternative would be high hence the minister of government would obtain
more funds from the taxation that will be imposed on the corporations. On the contrary,
if the first option is incepted the ministry of transport would not be assured of the
number of trips that would be made by the taxi companies and therefore it may
encounter the challenges of obtaining funds especially when the corporations reduce
the number of trips made by presuming that they would incur high costs as a result of
making more trips.

Industrial Analysis
Inverse Demand and Marginal Cost

Industrial Analysis 4
A close evaluation of the tax corporation industry depicts that the consumers or
the customers of the tax corporations do not have a choice or preference ...


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