Smith LLC has an annual demand of 1400 high-grade networking hubs. The cost for each hub to Smith is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $25 per order.

a. What is the EOQ?
b. What is the total cost of ownership (including annual holding and ordering costs, plus cost of goods sold) for Derrius Smith, the owner?
c. If Derrius orders in quantities of 300 or more, he can get a 5% discount on the cost of detectors. What is his new total cost of ownership?

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces