Show the average-cost curve and firm-specific demand curve

Assignment Help Econometrics
Reference no: EM131134684

Satellite Radio Merger. Suppose each of the two satellite radio firms initially has 9.5 million subscribers and generates negative economic profit: Average cost exceeds the $13 price. Assume that the marginal cost is constant at $2 per subscriber. (Related to Application 2 on page 605.)

a. Use a graph to show the average-cost curve and firm-specific demand curve for one of the two satellite firms.

b. Suppose the two firms merge into a single firm. The profit-maximizing price is $13 and the average cost is $12. Illustrate with a graph.

Reference no: EM131134684

Questions Cloud

Complete the assignment for writing memo : complete the assignment for writing memo on white paper topic.- This assignment will help me focus on a topic for the white paper.
Compare the filling capability of packaging equipment : An experiment was conducted to compare the filling capability of packaging equipment at two different wineries. Ten bottles of pinot noir from Ridgecrest Vineyards were randomly selected and measured, along with 10 bottles of pinot noir from Valle..
More frequent information technology related audits : What are some of the drivers leading management to need more frequent information technology related audits?
Describe how technology enhances instruction in classroom : Describe how technology enhances instruction in the classroom and your current and/or anticipated professional role. Discuss how technology supports differentiated learning experiences for a variety of learners and their unique needs.
Show the average-cost curve and firm-specific demand curve : Suppose the two firms merge into a single firm. The profit-maximizing price is $13 and the average cost is $12. Illustrate with a graph.
Calculate the number of strands : The double stranded DNA molecule is subjected to polymerase chain reaction (PCR). Calculate the number of strands after 25 cycles of PCR
The authors use this one-way anova test : For this Assignment, you will continue your practice as a critical consumer of research. You will critically evaluate a scholarly article related to one-way ANOVA testing.
Describes the purpose of the audit work program : Which of the following BEST describes the purpose of the audit work program?
Briefly describe how a retroelement moves to a new location : In the Meselson and Stahl experiment, E. coli cells were grown in heavy (15N) nitrogen, and then switched to light nitrogen. Briefly describe how a retroelement moves to a new location

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate the f statistic from the value of r2

Similarly, calculate the F statistic from the value of R2 obtained in the earnings function fitted using your EAEF data set and check that it is equal to the value printed in the output. Perform an appropriate F test.

  Determine how much more output-income per year

a) Just to provide the 2.7 billion "severely" poor population with $1 more output per day b) To raise the incomes of the world's "severely poor" population (income less than $2 per day) to the official threshold of U.S. poverty (roughly $5,000 per..

  What were the warning signs of financial decline

What types of strategies and actions could the board of directors initiate which could have changed the outcome?

  Did prices for these loans increase or decrease

Did prices for these loans increase or decrease

  What is price elasticity of demand for movie ticket at crown

Based on this information, what is the price elasticity of demand for movie tickets at Crown What, if any, other factors could have accounted for some of the decline in attendance leading to an overinflated price elasticity of demand

  What would make the 08-09 budget a surplus

Projected government revenues from blood sucking income andconsumption taxes, not to mention pick-your-pocket duties andexcise tases is $243 billion for 2008-2009 fiscal year.

  What would have been the size of the multiplier

Suppose that an initial $20 billion increase in investment spending expands GDP by $20 billion in the first round of the multiplier process. If GDP and consumption both rise by $10billion in the second round of the process, what is the MPC in this..

  What are qualifications and limitations of multiplier model

Proponents of the program have said that $400 million will be given directly to taxpayers and argue that this will have an economic effect that is greater than the original $400 million spent because of the multiplier effect. Many voters and taxpa..

  Find who live in high sales tax areas

It has been found that people who live in high sales tax areas are much more likely to purchase over the internet where they are usually exempt from sales tax from firms located in another state. The NGA has proposed a uniform tax of 5% on all int..

  What is the effective corporate tax rate

what is the effective corporate tax rate?

  Waht is the later years student cpi

Suppose that the typical student consumer basket is made up of only three items: The typical student consumes 1000 meals each year, makes 12 housing payments each year, and pays for 40 credit-hours of tuition each year.

  Is bundling more profitable than selling separately

At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot p..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd