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A firm that sells? e-books - books in digital form downloadable from the Internet? - sells all? e-books relating to? do-it-yourself topics? (home plumbing,? gardening, and so? on) at the same price. At? present, the company can earn a maximum annual profit of ?$45,000 when it sells 15,000 copies within a? year's time. The firm incurs a 30?-cent expense each time a consumer downloads a? copy, but the company must spend ?$145,000 per year developing new editions of the? e-books. The company has determined that it would earn zero economic profits if price were equal to average total? cost, and in this case it could sell 30,000 copies. Under marginal cost? pricing, it could sell 110,000 copies. In the short? run, to the nearest? cent, what is the? profit-maximizing price of? e-books relating to? do-it-yourself topics?
Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. What are the profit-maximizing price and output levels? Explain them and calculate algebraic..
The first principle of economics discussed in Chapter 1 is that people face trade-offs. Use a production possibilities frontier to illustrate society’s trade-off between two “goods”—a clean environment and the quantity of industrial output. What do y..
In your own words, explain what corporate social responsibility (CSR) is. Name two examples of social responsible companies you know and explain why you consider them so.
Suppose the price of coffee beans increases by $0.20 per pound. What is the effect of this raw material priceincrease on the demand for roasted coffee? If one pound produces 50 cups of coffee, would the price of a cup of coffee rise by $0.01? Explain..
Elucidate why a system of marketable polution permits leads to less costly pollution abatement and a higher concentration of polluted areas tha a command - and control system.
Can you cite an recent cases where the government had to break up a monopoly or where antitrust laws were broken and a company had to pay fines?
Analyze the implications of adverse selection in insurance markets that contain information asymmetry and community ratings. Justify your response.
How many years will the following take? $271 to grow to $11940 if invested at 8.46 percent, compounded annually?
1. For the aggregate demand, income and the price level are:
How would an advance terror warning affect the vulnerability determination from a terrorist attack?
Elucidate how the central bank manages a nation's monetary system. Outline the stated direction of recent monetary policy in the United States.
Cell phones and other electronic toys have become an integral part of our lives. Many people feel they must have their cell phones handy at all times! Whether texting, in particular, is ruining the way we communicate has become a controversial topic ..
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