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Suppose a firm is a monopolist in an e-commerce business. The cost of providing e-service, once the platform has been set up, to every additional customer is zero (MC=0).
a. Suppose the demand for this firm's services is given by P=2,000-Q and fixed costs are equal to $900,000. What is the optimal production rate? What is this firm's profit?
b. How much will this firm produce and what will it receive in profit if the demand is P=120-12Q and fixed costs are equal to $1,000?
Crowding out is an important topic.
What is the relationship between a perfectly competitive firm's MRP curve for an input and that firm's demand curve for that input?
Given the product structure tree and the inventory shown below, computer the net requirements for A, B, C, D, E to produce 50 units of X. Set up MRP schedules and show your calculations. Please assume that the lead times are one week for all items.
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