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A internet company has a fixed cost of $1,750,000 per month and a variable cost of $25 per month per subscriber. The company charges $45.95 per month to its internet customers. The company currently has 75,000 subscribers and proposes to raise its monthly fees to $55.95 to cover add-on features such as movie streaming and music streaming. What is the new breakeven point if the variable cost increases to $30 per customer per month?
In my mind it is hard to imagine any competitive advantage that technologies give to business without considering efficiencies. To me, technology is meant to either streamline business processes or automated them altogether. While many argue against ..
Suppose K = 1,000; L = 200 workers; and M = value of all materials use at 450. Derive the total product or output. Find and interpret the output elasticity (or elasticity’s).
Unemployment is one of the major concerns that people have in today’s economy, since losing one’s job can be one of the most devastating events a person can experience. What is the labor force participation rate? What was the labor force participatio..
Suppose that a country that has a high level of output per person agrees to trade with a country that has a low level of output per person. Which country can benefit?
Imperfect competition is the norm, so healthcare markets cannot work. Analyze this comment and explain your answer. The existence of market failure does not signal what should be done in response.
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from the bank if you wish). The value of the company to the owners is the difference between the total value and the amount owe..
In 2002, a well known conglomerate that produces a multitude of noncompeting customer products instituted a corporate wide initiative to encourage the managers of its many divisions to share consumer demographic info.
q1. assume that the autarky charge of commodity x is 10 in nation a 8 in nation b as well as 6 in nation c as well as
Illustrate what do the nominal interest rate also the real interest rate that Whitney can earn. Whitney puts money in a savings account at her bank earning.
Zack quits his job at a consulting firm, which pays $40,000 a year, to enrol in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-ye..
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($1500 deductable), life insurance equal to a year's salary, vacation time based on length of employment with th..
Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20. According to the midpoint method, the government policy should hav..
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