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A software producer has fixed costs of $18,000 per month and her Total Variable Costs (TVC) as a function of output Q are given below:
Q TVC Price1,000 $15,000 $252,000 20,000 243,000 30,000 234,000 50,000 225,000 80,000 20(a.) If software can only be produced in the quantities above, what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity is also listed above? Why? (Show all work).
(b.) What should be the production level if fixed costs rose to $48,000 per month?
Let X = the monthly tons of dirt moved and assume that it does not change with time. Draw the cash flow diagram for this project as a function of X. Assume that "up" arrows are savings or revenue and down arrows are expenses. If you cannot do part..
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Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.
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Compute the elasticity for each variable and briefly comment on what that data gives you in each case.
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