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a. Create a spreadsheet describing Amazon's output and pricing choices with respect to the Kindle e-reader. (Use the template from Problem S1 with price equation: P = $294 - 35Q and MC = $126.) Use your spread- sheet optimizer to find the combination of output and price that max- imizes profit.
b. Now include the extra net revenue from e-book sales, $100 per kindle. (Compute this total in cell C7 according to the formula: = 100*B7.) Finally, in cell H7, compute total profit (from both Kindles and e-book sales). What combination of Kindle output and price maximizes Amazon's total profit? Explain why Amazon should cut its price relative to the price in part (b).
Your company is currently engaged in business activities both nationally and internationally. A country you are operating in is experiencing riots, strikes by its citizens, unconfirmed violence against its people by the government, and other atro..
describe both quotas and tariffs. how do they impact domestic prices and deadweight loss? how does an import quota
Who were the key actors involved in the decision-making to go to Iraq and how did their ideas evolve?Why were some actors involved and others excluded from the decision-making to go to Iraq and did the exclusion of some actors affect the decision tha..
price controls and the candy bars. During World War II, the U.S. government imposed price controls to set maximum prices on all different products, including candy bars. How did the candy bar producers respond to maximum prices?
After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological chang..
Why is it not surprising to find that in the oligopoly which sells basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?
Why do some economists claim that we should not worry too much about inflation at this level?
When an agent acquires interest against the principal’s interest, without the principal’s knowledge, the agency relationship terminates due to: Which of the following kind of termination occurs due to operation of law?
State the multiple regression equation. Interpret the meaning of the slopes, b1 and b2,in this problem.3) Predict the weekly fuel consumptions for the average hourly temperature is 53.10 and the chill index is 15.
What type of person becomes this type of risk taker - What challenges did he or she face and overcome?
what is the best option now? Please be sure to keep the initial decrease in consumption (after-tax income) constant - what if the rates are 15% now and 30% in retirement?
Given the global economy, increase of emerging economic superpowers such as China and India, and challenges to remaining competitive in a global world, do you think that American federalism remains relevant?
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