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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 $25,000 when it sells 10,000 copies within a year’s time. The firm incurs a 50-cent expense each time a consumer downloads a copy, but the company must spend $100,000 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 20,000 copies. Under marginal cost pricing, it could sell 100,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself topics?
At the profit-maximizing quantity, what is the average total cost of producing e-books?
The output effect of an increase in the wage comes about because higher wages:
Diamond makes an argument that all stratified societies employ one (or a combination) of four means to enable and justify the distribution of the social surplus. From the readings, discuss feudal stratification and how it was enabled and justified..
The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe the employee not to do this Explain why or why not. c What factors will determine the best numbe..
Even before the metals and manufacturing companies described earlier, U.S. railroads in the nineteenth century were M-form organizations based on geography. Why might a large railroad be better organized as M-form than U-form?
The steady increase in demand for home computers has resulted in the massive increase in demand for web access, yet, the price of access has been steadily declining.
How does an increase in the price of widgets affect the: And describe the effects in detail?
Using the Federal Reserve's report (see link below) on Money Stock Measures for June 7, 2012 determine the growth rate of the Seasonally Adjusted M1 Money Supply between January 2011 and January 2012.
The expected returns earned from investment in the stock of two companies, Company A and Company B, are shown in the following table. Use the table to complete parts (a) through (e) below.
Calculate the extra output due to the water project and calculate the annual output of the village if the water project would be installed in $s
List at least four sources of growth in the economy along with two examples of each source. Explain what it contains and why these sources are important.
Give two conditions that are important to the efficient market theory. List one implication of the efficient market theory.
Describe the effects of each of the following managerial decisions or economic influences on the value of the firm: 1. The firm is required to install new equipment to reduce air pollution.2. Through heavy expenditures on advertising, the firm's mark..
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