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A internet company has a fixed cost of $1,750,000 per month and a variable cost of $25 per month per subscriber. The company charges $45.95 per month to its internet customers. The company currently has 75,000 subscribers and proposes to raise its monthly fees to $55.95 to cover add-on features such as movie streaming and music streaming. What is the new breakeven point if the variable cost increases to $30 per customer per month?
Outline what the kinked demand curve model of oligopoly seeks to explain. What are the major points of this theory? How does the kinked demand theory of oligopoly differ from other theories in terms of explaining the behavior of companies in an oligo..
q.list at least one advantage and one limitation ofapplying international trade perceptions which simulation and
Illustrate what are some criteria which Rollerblade should use to select countries to enter also. Illustrate what three or four countries meet these criteria best also are the most likely consolidates.
Assume consumer equilibrium (budget curve and indifference curves). Draw 3 separate scenarios: (1) the price of good x decreases; (2) the price of good y increases; and (3) the budget (income increases). In each scenario, explain the effect on the gr..
If an option existed for an equivalent computer system to be purchased for $810 per month, paid at the end of each month in 2012, should they take this plan instead? Explain Answer!
Explain how do you think that these individuals would rank the utility of these same expenses for themselves. What reasons may account for the similarities and differences in the ranking of such expenditures by your neighbor, your friend, and your..
Use the principles of supply and demand to address a predetermined goal (set by you) in the gasoline market. Be clear on what the current market indicates and why and what your future goal is. We will probably revisit some of your choices in future m..
A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using
Assume the return on a 1 year domestic bank CD equals 3%. The return on a 1 year European bank CD equals 5%. Assume there is no default risk and no other transactions to prevent exchange rate risk. If the euro is expected to depreciate by 4%, a saver..
A firm has enough retained earnings to finance an investment project. For this firm, the market interest rate:
Assume that Omar's marginal utility for cups of coffee is constant at 1.5 utils every cup no matter Elucidate how many cups he drinks.
A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. Under conditions of perfect competition, maximum profit o..
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