Demand for movie will stay same for sufficiently time

Reference no: EM13321772

A small video store currently has 9 copies of the DVD I’m Number 4 in its store. There are 15 customers on average every day coming to the store to request this movie. If the movie is not on the shelf, they leave and go to a competing store without waiting. The average rental duration is 36 hours. Each rental is $5 (i.e., $5 per rental for the whole rental period, not per day).

a) Assume the demand for the movie will stay the same for a sufficiently long time. It costs $50 to purchase a copy of this movie. Suppose this video store plans to buy a new copy and then there will be total 10 copies of this movie. What will be the payback time for this $50 investment?

Reference no: EM13321772

Questions Cloud

Analyze a current event article on global ethical issues : Analyze a current event article on global ethical issues from a multi-national corporation perspective. The article can be no late than 2010. The following elements must be addressed: 1) Summarize its key points 2) analyze its multi-national and glob..

After deepblue presents its case as plaintiff : After DeepBlue presents its case as plaintiff, Paul's Store, defendant, moves for a directed verdict. The judge denies the motion. The next step in the trial is that the attorney:

Whats the alternative hypothesis for this hypothesis test : Is the average current ratio for the sample of 15 firms greater than 2.0? What’s the null hypothesis for this hypothesis test? What’s the alternative hypothesis for this hypothesis test?

Descartes reintroduces the senses and sense-based knowledge : In Meditation VI, Descartes reintroduces the senses and sense-based knowledge that he has previously excluded. According to him, what role do the senses and knowledge derived from the senses play for human being. Wherein lies their usefulness?

Demand for movie will stay same for sufficiently time : Assume the demand for the movie will stay the same for a sufficiently long time. It costs $50 to purchase a copy of this movie. Suppose this video store plans to buy a new copy and then there will be total 10 copies of this movie. What will be the pa..

Difference between leadership and management : Why a company's culture important? Can a company’s culture make it sucessful or it doesn't matter? What is the difference between leadership and management?

Materials about the boston tea party : What is one important distinction you could not overlook making when critically evaluating the information provided in these materials about the Boston Tea Party? Clarify the importance of that distinction.

Application blanks-personality testing-oral interviews : I need to examine a screening/selection method, e.g. (application blanks, personality testing, oral interviews, reference checking, and assessment centers) and determine the validity of one of these in determining how predictive it is of successful j..

Supply and demand curves and compute daily export quantity : Ecuador exports oil at the world price P, $95 per barrel. Its supply in barrels per day is S = 25000 + 5000P with P in dollars. Domestic demand is D = 75000 - 500P. Draw the supply and demand curves and compute daily export quantity and the value per..

User Account

All Pages