OPEN-ENDED QUESTION 1) a) + Safety and neighborhood : A secure neighborhood provides residents with peace of mind and a sense of security, making it an essential factor for long-term housing. + Utility costs : These include electricity, natural gas, water, the internet, and any other utilities. A clearer picture of the total monthly expenditure can be obtained by evaluating the average utility costs for each apartment. + Number of Days at ANU: The number of days you must commute to ANU for classes is necessary for calculating the total time and cost of commuting. Also, going to university few days a week can help me spare time + The value of time : it is a crucial consideration, particularly if I have additional obligations, such as a part-time job. The importance of reducing commute time increases as it enables me to devote more time to part-time employment. + Quantity of time spent working : The tuition costs of ANU is expensive for international students, employment can reduce financial burdens. + Work-Life Balance: A shorter commute can improve work-life balance by allowing me to devote more time to personal pursuits, interests, and socializing. A shorter commute can facilitate the formation of stronger bonds between classmates, thus opening my networking. + Proximity to amenities : It is essential to have detailed information about the local amenities, including local supermarkets, restaurants, parks, recreational facilities, and medical facilities. b) Assumptions + Safe and Neighborhood : all areas are considered safe because the crime rate in Canberra is significantly lower than the national average. + Days going to university : 5 days a week + Utility costs : Acton and Turner - 60 dollars per week, Greenway - 50 dollars per week. it may be costlier to live in Acton and Turner because they are near the city center compared to living far away like Greenway. + Value of time : 1 hour of time worth 23 dollars the same as the minimum wage in Australia. + Number of hours working : 15 hours per week because studying is my priority. + Work-life balance : It will be better when living in Acton and Turner compared to Greenway because of short traveling time. Therefore, I may have more time outside of class to engage in informal interactions and team-building activities. These interactions can have a positive impact on your university experience, fostering a sense of belonging in the academic community. + Proximity to amenities: It is advantageous to live in Acton and Turner because it will make life more convenient by reducing the amount of time needed to complete daily tasks such as grocery shopping, visiting medical facilities, and heading to the bank. In addition, I am able to make unplanned choices such as dining or going to the movies without a lot of preparation. Total cost for each apartment : Acton) Rent: $515/week Commuting Expenses: $16/week Utility Costs: $60/week Total Cost = Rent + Commuting Expenses + Utility Costs Total Cost = $515/week + $16/week + $60/week = $591/week Part-Time Earnings: $23/hour x 15 hours/week = $345/week Net Cost (Total Cost - Part-Time Earnings) = $591/week - $345/week = $246/week Turner) Rent: $490/week Commuting Expenses: $16/week Utility Costs: $60/week Total Cost = Rent + Commuting Expenses + Utility Costs = $490/week + $16/week + $60/week = $566/week Part-Time Earnings: $23/hour x 15 hours/week = $345/week Net Cost (Total Cost - Part-Time Earnings) = $566/week - $345/week = $221/week Greenway) Rent: $460/week Commuting Expenses: $16/week Utility Costs: $50/week Total Cost = Rent + Commuting Expenses + Utility Costs = $460/week + $16/week + $50/week = $526/week Part-Time Earnings: $23/hour x 15 hours/week = $345/week Net Cost (Total Cost - Part-Time Earnings) = $526/week - $345/week = $181/week Regarding the cost-benefit analysis, despite the advantages of staying in Acton and Turner, the Greenway apartment is the best option due to its cost-effectiveness, with a weekly net cost of 181 dollars. I believe the benefits of Acton and Turner apartments are not worth the difference of $65 per week. 2) a) Potential benefits: As the city's first Ramen restaurant, Elijah will face less immediate rivalry from other establishments of a similar nature. Before prospective competitors enter the market, he has a significant advantage in establishing his brand and acquiring a loyal customer base. Customers seeking Ramen will have no choice but to dine at his establishment, affording him the unique opportunity to meet the demand for this cuisine. Since there is no imminent competition, Elijah can set dish prices more freely, taking into account the cost of ingredients and other restaurant expenditures. Elijah is able to offer clients competitive prices while maintaining a high profit margin by exercising stringent cost control. Elijah is capable of meticulously planning his menu to include affordable and popular products. By emphasizing locally sourced and easily accessible ingredients, it is possible to reduce costs without forsaking quality or authenticity. Launching a restaurant that is the first of its kind in the digital age is likely to garner attention on social media platforms and review websites, given that people appreciate sharing their experiences. Good feedback may create a sense of urgency for others to visit the restaurant. Consequently, Elijah will find it simpler to pique residents' interest in his business, resulting in greater profitability than if he had opened in city A. Potential costs : Competition with local cuisine can be difficult for Elijah's Ramen restaurant, particularly if the local population has strong preferences for well-established and renowned dining establishments in City B. Potential customers who are unfamiliar with ramen may be hesitant to try a new style of cuisine, such as ramen. Additionally, some potential customers may have preconceived notions or stereotypes about certain cuisines, and it may be difficult to surmount any negative stereotypes associated with Ramen, particularly if they are unfamiliar with it. For Elijah’s ramen restaurants, here are some of the operational costs that he will face ● Paying salaries to kitchen staff, servers, managers, and other employees as well as benefits such as health insurance, paid time off, and retirement ● Elijah needs to spend on marketing and advertising efforts to promote the restaurant, attract customers, and maintain visibility in the market. ● Utility bills including electricity, water, gas, internet services are essential for keeping the restaurant operational b) Before making a decision, Elijah needs more information about the residents' taste preferences in city B, as these preferences may have a significant impact on their restaurant food selection. He can conduct surveys to determine whether or not people are interested in Asian foods, specifically ramen, in order to assess their willingness to try new cuisines.The lack of ramen restaurants in city B may be due to the unfavorable perception of ramen . Therefore, Elijah can alter the flavor of the ramen based on surveys to match the preferences of locals. Elijah might encounter difficulty acquiring the necessary Asian ingredients if City B is unable to provide some of them. Obtaining these ingredients may increase the overall price of food and menu items because it is costly and time-consuming. Elijah will have to offer fewer ramen dishes on the menu due to the absence of ingredients. It may be challenging for him to accommodate the preferences of a variety of consumers, resulting in a less satisfying dining experience. Thus, affecting the sale of the restaurant. 3) With the given formula : � = �� + � When the area � is 500m², the price � is $1300 => 1300= k*500+b (1) When the area � is 1000m², the price � is $2300 => 2300 = k*1000+b (2) With the given formula : � = �� + � For the first data (1) : b= 1300- k*500 (3) Replacing (3) into (2) : 2300 = k*1000+1300-k*500 1000 =500k 2 =k => b = 1300-2*500 = 300 Therefore, k = 2 and b = $300 are the respective values of k and b. The linear function p = 2A + $300 represents the price p in terms of the area A. 4) a) Assuming the company introduces new advanced technology, Ann's cost curve is reasonable, as the cost per unit can be substantially reduced. Consequently, producing the same number of kilograms will result in lower total estimated costs than actual costs. Bob's cost curve is irrational because production costs must be incurred. The cost of producing two kilograms of milk powder cannot be zero. Under the presumption that new technology is more cost-effective when producing high volumes, such as eight or ten kilograms, Chris's cost curve is reasonable. As a result, it will reduce the average unit cost and the estimated total cost. In case company B produces less than 6 kilograms , it is not practical to apply the technology due to higher estimated cost than actual cost. David's cost curve is implausible because the company can not incur costs if it is not producing any unit. Second, the total cost curve must be sloping upwards because the greater the quantity of units produced, the greater the total cost. According to likely economic assumptions, having more units can reduce the average unit cost but cannot result in a lower total cost than producing fewer units. b) Given the cost curve estimated by Ann and Chris, firm B can employ the new technology under certain conditions. Firstly, employees can maximize cost savings after training by entirely utilizing the technology. A failure to do so may result in implementation issues that disrupt procedures and temporarily reduce efficiency in manufacturing. The company's production processes can be more effective by lowering production costs if the employees use the technology properly. For example, it can help the company increase output while maintaining the same amount of inputs or reducing resource consumption. Secondly, according to the two graphs, the discrepancy between estimated and actual cost is greatest when producing 8 kilograms or 10 kilograms of milk powder. The company should aim to use the technology to make it in large quantities. Consequently, firm B will gain a competitive advantage, enabling them to offer products at more competitive prices or achieve higher profit margins, increasing their market share and profitability. On the other hand, the company must consider the time and money spent developing the technology, as this can harm its short-term finances.
