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Digital Books, LLC is a company that sells e-books related to career advising and professional development. Digital Books, LLC earns a yearly positive economic profit of $25,000 if it can sell 10,000 e-books. Each time, a customer buys an e-book it incurs a cost of $0.50 (cost of downloading each e-book). Digital Books, LLC spends each year $100,000 developing new e-books (new topics and new editions). Is the company market- competitive or not? What is the profit-maximizing price of e-books in the short run? What is your prediction of the profit-maximizing price of e-books in the long run? Will the profit-maximizing price of e-books change in the long run? Why? Why not? Should we include fixed costs in formulas of short-run and long-run profit maximization or we can avoid it in both cases? Is $0.50 -VC or MC?
Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.25 per card, and the cost of printing is $0.60 per card. The company receives $3.90 per card s..
An accountant believes that a company’s cash flow problems are due to outstanding accounts receivable. She claims that 70% of the current accounts receivable is over 3 months old. A sample of 120 accounts receivable revealed 78 over 3 months old. Ver..
The type of listing contract that provides for the payment of the commission to the broker even if the propery is sold to buyer found by the owner.
A. Mr. Maloy has just bought a new $40,000 sport utility vehicle. Given his health conditions, he believes that there is about a 15% chance of being in an accident (that he caused) in the forthcoming year. Mr. Maloy is trying to decide whether he is ..
A firm that manufactures medical research supplies delivers them to hospitals and medical centers around the country. The deliveries can be made using Less-than-Truck-load trucks, air express, private truck fleet, and UPS. What factors should be cons..
Pricing Issues on the Internet One of the easiest places to see the impact of the Internet on marketing is by looking at its effect on pricing decisions
MSA Computer Corporation manufactures two models of minicomputers, the Alpha 4 and the Beta 5.
Discuss on international business strategy, what would you say the phrase meant? For example, Starbucks is known for its global strategy while maintaining the local ambience in its coffee shops. Let me know what your thoughts are.
How does ERM adoption and implementation in the higher education environment differ from the for-profit environment?
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $8 each or to produce them in-house. Either of two processes could be used for in-house production;
Other than the mandates of the Internal Revenue Code (IRC) and a few other ineffectual reporting and disclosure requirements,
Describe the purpose of a training needs analysis. How can a training needs analysis help a business become more of a "learning" organization?
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