Reference no: EM13105586
One of the offenders cited in the article is the Royal Economic Society's Economic Journal, which charges about 50% more for library subscriptions in the U.S. than in the U.K. Figures on actual sales and publication costs are not provided in the article, but suppose that an investigation reveals the following data regarding the relationship between prices for this journal and U.K. and U.S. sales:
Price per U.K. U.S.
subscription subscriptions subscriptions
$50.00 500 5,500
$60.00 400 5,000
Furthermore, suppose that the marginal cost of printing and delivering the journal to each additional subscriber is only $20 per year whether the subscription is sent to the U.S. or the U.K., while the costs of soliciting, editing, and typesetting articles for the journal comes to $260,000 annually.
1. Using these data, draw and label the (linear) U.K. and U.S. demand curves.
2. Calculate the profit maximizing price and quantity of subscriptions for the U.K. and indicate each on the appropriate graph. Do the same for the U.S.
3. What are the total profits to the Royal Economic Society annually from the sale of the journal at these prices?
4. Given that the price charged in the U.S. is so much higher than in the U.K., shouldn't the Royal Economic Society be able to increase its profits by reallocating its current production away from the U.K. and toward the U.S.? Why or why not?
5. If the Royal Economic Society were forced to charge the same price to all subscribers, the profit maximizing price per subscription would be $85.00. If this is the best single price that the R.E.S. can get for its journal, what level of output should the R.E.S. plan for next year?
Explain.
6. Would elimination of differential pricing leave journal readers better or worse off in this case?
|
Proportion of registered voters in the state
: A newspaper conducted a statewide survey concerning a proposal to raise taxes to prevent budget cuts to education. The newspaper took a random sample (assume it is an SRS) of 1200 registered voters and found that 580 would vote to raise taxes. Let..
|
|
Illustrate what might be the effects in terms of such right
: If a contract involves a sale or lease of software that can be delivered and accessed, online, illustrate what might be the effects in terms of such rights and remedies as cure, cover, repletion and reclaiming goods?
|
|
Recommendation for network
: You have been hired by a small new web design firm to set up a network for its single office location. The network is primarily needed for exchanging files, accessing and managing beta websites on its web server, and connecting to the Internet.
|
|
What are various groups that identifies as well as the goals
: Start with the Org Level. Recognise the Outputs - what does it produce and sell? What are its goals? How has it been performing? Then go the group level.
|
|
Calculate the profit maximizing price and quantity
: Calculate the profit maximizing price and quantity of subscriptions for the U.K. and indicate each on the appropriate graph. Do the same for the U.S.
|
|
Explain how does eharmony define its market segment
: Explain how does eHarmony define its market segment? Illustrate what strategy or strategies does eHarmony use to target one particular segment?
|
|
Sample sales mean below the value
: Their monitoring plan will take a random sample of 5 days sales per month and use the sample mean sales to identify shops that are under-performing. Establish the lower limit sales such that only 5% of the shops would have a sample sales mean belo..
|
|
Calculate the expected number of trucks waiting in the queue
: Billy of Billy's Warehouse in Maine contracts with motor carriers for deliveries however, they assess him with stiff penalties if their trucks have to wait to be unloaded.
|
|
Determine decimal value on big-endian machine
: A 32-bit word on the little-endian computer has decimal value of 261. Determine its decimal value on big-endian machine?
|