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An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A’s monthly demand for phone calls is Q1 2,800 200p (with p measured in cents) and Firm 2’s is Q2 5,000 100p. The marginal cost of providing a phone call is 6 cents. Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
Imagine that you are a lobbyist for timber, an established industry suffering from low-priced foreign competition, and you are trying to get Congress to pass trade restrictions. Which two or three of the five arguments do you think would be most pers..
Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client, Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund ..
q.why was firm examining in support of antitrust behavior? categorize some of costs financial and non-financial
Suppose that a formerly closed small economy becomes open. What will happen to the effectiveness of fiscal and monetary policies in affecting GDP if the economy operates under flexible exchange rate? Illustrate your answers graphically. How does your..
What is the difference between an economic profit and an accounting profit, give an example? 3. Discuss the difference between diseconomies of scale and diminishing returns. Based on the cost curves which is more likely in businesses?
Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Now that you have looked at these characteristi..
A solar panel has an installed cost of $2900, and it reduces the homeowner’s energy bill by $29 per month. The residual value of the solar panel is negligible at the end of its 11-year life. What is the annual effective IRR of this investment?
Consider the following goods and services. Which are the most likely to be produced in a perfectly competitive industry? Which are not? Explain why you made the choices you did, relating your answer to the assumptions of the model of perfect competit..
Suppose that a consumer's preference between the good x and y are represented by the utility function u(x,y)= x+y. If these two goods have the same price, describe the optimal consumption choices of this consumer.
An asset used in a three-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $8,700,000 and will be sold for $1,910,000 at the end of the project. If the tax rate is 34 percent, what is the after tax..
Suppose that the U.S. noninstituional adult population is 230 million and the labor force participation rate is 67 percent. Illustrate what would be the size of the U.S. labor force.
q1. qd680-9p0.006m-4pr where m is income and pr is the cost of a related good. from this relationship it is apparent
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