Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Geriatric Phone Company serves older Americans who live off of Social Security payments. It uses a atrate pricing scheme for data use, unlike more “youth-focused†companies that allow for unlimited data use. The company charges $2/gigabyte to its consumers for each gigabyte worth of data they download to their phone over the cellular data network. The company has 100,000 data-plan subscribers and they have the same preferences on cellular data (x1) and a composite good(x2). Assume the price of the composite good is $4/unit. Each plan subscriber has the same monthly Social Security income: $3,000. Currently, each subscriber uses 100GB worth of data per month. The company is now considering changing its pricing policy into a two-tier policy: it charges $2/GB for the first 100GB of data, but only $0.5/GB for all additional data. Under this new pricing scheme, will data usage increase? Explain.
(a) Draw a graph of typical indifference curves, budget constraints, the optimal choice of a typical subscriber under the current fixed-rate policy and the new two-tier pricing scheme. Make the horizontal axis the amount of data downloaded (in GB) (x1) and the vertical axis the amount of the composite goods (x2) consumed.
(b) Provide a justification for, and list any necessary assumptions related to, your answer previous answer (a) in a few succinct sentences.
Give the price and output level of international dynamo's product. Based on your answer to part a, what is international dynamo's profit?
Suppose a monopolist produces alkaline batteries that may have various useful lifetimes (X). Suppose also that consumers’ (inverse) demand depends on batteries’ lifetimes and quantity (Q )purchased according to the function
If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to carry out a major expansion.
Do the data provide sufficient evidence to indicate that bulbs produced by the suspect line possess a larger variance in length of life than those produced by the line that is assumed to be in control? Use α = .05.
Robert is buying CDs. He receives 96 utils from his first CD, 48 Utils from his second CD, and 28 utils from his third CD. What is Roberts marginal utility from his third CD?
The demand for video recorders are neither inferior nor inelastic and video recorder film is not a substitute for video recorders
Suppose that you have the following sample: {3,4,4,6,8} estimate the mean and standard deviation.
What is the consumer price index (CPI)? How is it measured? What are the pros and cons of using the CPI as a measure of the cost of living?
Suppose market demand and supply are given by Qd = 300 - 4P and QS = -50 + 3P. The equilibrium price is: a $35. b $40. c $50. d $60.
The Engineering Economist is a quarterly journal that costs $20 for 1 year, $38 for 2 years, or $56 for 3 years. What is the IRR for subscribing for 2 years.
Suppose a city passes a law requiring that all coffee sold in the city be brewed using Fair Trade, Shade Grown, No Pesticide coffee beans.
Normal 0 false false false EN-US X-NONE X-NONE Identify some of the costs (pe..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd