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Many software companies, after years of providing unlimited free telephone technical support for their products, began to charge for these services (typically after an initial start-up period of 90 days). Most companies offer two pricing plans. Suppose, for instance, Lotus Development offers users of their spreadsheet software the option of paying either (i) $2.00 per minute for telephone support or (ii) a $129 flat charge for a year of unlimited toll-free calls.
Consider a customer with a yearly demand for service support of P = 11 - 0.1Q, where P is the price per minute and Q is the number of minutes of calls made per year. How many minutes of calls would this customer make under plan
(i)? How many minutes of calls would he or she make under plan
(ii)? Calculate the consumer surplus for each of the plans (i) and (ii).
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A revolutionary technology used in the production of brown rice lowers its cost of production given ceteris paribus. As a result, the market changes to a new equilibrium because of a(an)
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Gobi Inc. has sales of $40,000,000. The contribution margin is $0% and the fixed costs are $3,000,000. The variable costs per unit is $12. The company is considering two different strategies for increasing their profits:
at the same meeting of the open market committee where it announced quantitative easing 3 the fed chose to also
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4. The manufacture of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for the product are assumed to be as follows: TC = 500,000 + 0.85Q + 0.015Q2 and Q =14,166 - 16.6..
Descriptive stats for each numeric variable, Histogram for each numeric variable and Bar chart for each attribute (non numeric) variable
Consider an economy composed of identical individuals who live for two periods. These individuals have preferences over consumption in period 1 and 2 given by U = (c1)0.5 × (c2)0.5. They receive an income of 100 in period 1 (young) and 20 in perio..
What is the significance of resource pricing. Explain how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand.
A stem cell research project requires expensive specialized laboratory equipment. For this purpose, three pieces of equipment and their associated cash flows (listed below) are under consideration. One piece of equipment must be selected.
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