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Suppose that a textbook author is paid a royalty of α share of the revenue from sales where the revenue is R = pq, p is the competitive market price for textbooks, and q is the number of copies of this textbook (which is similar to others on the market) sold. The publisher's cost of printing and distributing the book is C(q). Determine the equilibrium, and compare it to the outcome that maximizes the sum of the payment to the author plus the firm's profit. Answer using both math and a graph. Why do you think royalties are typically based on revenue rather than profit?
graph the relationship between output and labor, holding capital constant at its current value. Find the MPN for an increase of labor from 100 to 110. Compare this result with the MPN for an increase in labor from 110 to 120. Does the marginal pro..
The federal government is considering three sites for mineral extraction in the national wildlife preserve. The cash flow ($ million) associated with each site are given below Initial cost Annual cost Annual benefits Annual dis-benefits Site A 50 3 2..
The following table gives average hourly nominal wages in nonagricultural industries and the price level in the United States from 1995 to 2002.
Use the McDevit-Long equation from the text. ? = 0.0025. Oxygen solubility in pure water is 8.4 mg/P at 298 K and 1 atm total pressure.
Derive and plot Olivia's Engel curve for pie if she eats pie only à la mode and does not eat either pie or ice cream alone (pie and ice cream are perfect complements).
The Crockett Land Winery must replace its present grape-pressing equipment. The two alternatives are the Quik-Skwish and the Stomp-Master. The annual operating costs increase by 12% each year as the machines age. If the interest rate is 9%, which ..
Assuming that people hold no currency, what happens to each of these values if the central bank changes the reserve requirement ratio to 3%, banks still want to hold the same percentage of excess reserves, and banks don't change their holdings of ..
Develop a theory or hypothesis about some economic relationship - draw conclusions to support your theory. Include at least six (6) references (no more than three years old) from material outside the text(s).
There are three goods in the consumer basket. The fixed quantities are these goods, which the consumer buys, are as follows: Food=60 units, Movies=40 units, and Clothing=90 units. Over a four-year period, the prices of these goods, PF, PM
You want to see how differences in fuel efficiency affect the price of a car - Calculate the OLS estimates β^0 and β^1 for the following model using the sample of 11 cars (you must show some of your work):
Extended Product Responsibility (EPR) assumes that all participants in the product cycle play a role in finding ways to reduce environmental risk. Identify the specific role played by the average consumer in this effort.
The research and development division of a large corporation is considering the purchase of a new tunneling X-ray microscope for $200,000. The projected net benefits from gains in materials engineering is projected to be $45,000.
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