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The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $200,000 to develop and only $0.5 per unit to deliver to each cell phone customer.
What will be the per-unit cost of the application if it sells 100 units?
What will be the per-unit cost of the application if it sells 1000 units?
What will be the per-unit cost of the application if it sells 1 million units?
Digital, Inc., is a manufacturer and distributor of blank computer disks for residential use. Revenue and cost relations are: TR= $4,500Q - $0.1Q2 TC= $2,000,000 + $1,500Q + $0.5Q2 Where Q is the quantity produced and sold per week.
Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout..
Suppose that a model of the economy suggests that the real interest rate is determined by the equation r= 8.35-%^Y where Y is the level of output, so %^Y is the growth rate of output. Suppose that people expect the Fed to hit its inflation targetI..
Economists estimate that on weekends the demand for your product is much higher than on the weekdays (monday-wednesday). On weekends. the inverse demand curve for a typical customer is P= 10 - 0.001Q; on weekdays, it is P=5- 0.01Q.
design two packages for the second-degree price discrimination case so that the first package has quantity 8 for the high demand and the second one has quantity 6 for the lower demand such that the low demand group has consumer surplus at least $5..
illustrate the market for theater tickets in the case of these two externalities. Again, label the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, the efficient level of output..
On april 20, 2010 an oil drilling platform owned by British Petroleum exploded in the Gulf of Mexico, causing oil to leak into the gulf at estimates od 1.5 to 2.5 million gallons per day for well over two months. Due to oil spill, the government c..
An engineering freshman wants to purchase a laptop computer for use during the 4 ½ years that she plans to study engineering at Texas Tech.Assume that maintenance and supplies will cost $100 each six months . Use an interest rate of 12% per year wi..
Suppose the microchip producer faces demand and cost equations given by Q= 8.5 - 0.5P and C = 100 = 38Q. Choosing to treat price as its main decision variable, it writes profit as: f= R- C = [P(8.5-.05P)] - [100+(38)(8.5 - .05P)] = -423 +10.4P - ...
Vander's sells bicycle in a small shop on main thoroughtfare, and the manager has computed some numbers based on past sales of bikes. she estimates the demand curve to be P=80-2Q. costs are given by C=200+20Q.what numbers would you use to back up y..
Assume Wilbur's utility function is U=(x1)*(x2)*(x3). Further assume that the law dictates that Wilbur consume two units of X1 for every unit of X2. Determine Wilbur's demand function for good 1. Explain, in words, all the steps in your deriv..
As a dentist you find that a person's annual demand curve for appointments are P=500-50Q. The marginal cost for your service is $50 There are three ways you could charge for your services -Charge $50 each time someone makes an appointment -Sell an an..
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