Determine monthly demand for minutes of calling

Assignment Help Econometrics
Reference no: EM13236951

A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qd= 150-50P is the price of the minute?

How much consumer surplus would he obtain with each provider?

Reference no: EM13236951

Questions Cloud

Should laptop producers be happy or sad about technological : Ipads and laptops are substitutes. Use a supply and demand to show what happens to price, quantity, consumer surplus, and producer surplus in the market for laptops (after a technological advance has reduced the cost of making Ipads).
Explain how many moles of hydrofluoric acid : How many moles of hydrofluoric acid (ka=6.8e-4) must be added to 500 ml of .10M sodium fluoride to give a buffer of pH 3.20
Compute the opportunity costs of tvs and computers : In one minute, Country B can produce either 1,000 TVs and no computers or 500 computers and no TVs. Similarly, in one minute Country C can produce either 2,400 TVs or 600 computers.
Explain what is the maximum concentration of fe3+ : What is the maximum concentration of fe3+ can a buffer solution that is .10M CH3COOH and .10M CH3COONa hold without forming any precipitate
Determine monthly demand for minutes of calling : A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls.
Explain what is the molarity of benzoic acid : 500 ml solution of benzoic acid (ka=6.6e-5) has a ph of 2.88. What is the molarity of benzoic acid
Which tractor is better using the net present worth method : A mega agricultural operation is considering the purchase of a new tractor. 1. Which tractor is better using the Net Present Worth (NPW) method 2. Which tractor is better using the Internal Rate of Return (IRR) method
Explain what is the value of k for h2po4 : H3PO4 is a tripotic acid with a ka1=7.5x10^-3, ka2=6.2e-8 and ka3=4.8e-13. What is the value of K for H2PO4 PO4^3- + 2H+
Explain what amount of barium hydroxide : What amount of barium hydroxide (in moles) must be dissolved in a total of 5.00L of solution in order to have a pH of 12.00

Reviews

Write a Review

Econometrics Questions & Answers

  Find firms long-run total-average and marginal cost curves

Suppose the production manager is told to minimize the short-run total cost of producing Q units of output. While total output Q is exogenous, the manager can choose how much to produce at plant 1 (Q1) and at plant 2 (Q2), as long as Q1 + Q2 = Q.

  What is the value of checking deposits in pesos

In a hypothetical economy, the monetary aggregate M1 equals 120,000 pesos, and M2 equals 320,000 pesos. The following information about this economy is also available: Money market deposit accounts 80,000 Amount of currency held outside of banks.

  Optimal way to divide your assets between money and bonds

Before the income is spent, it can either be kept in money or bonds. Money yields no interest. Bonds yield a yearly interest of 4%, but a transaction fee of 18 has to be payed each time bonds are sold. Use the Baumol-Tobin model of money demand to ..

  Determining greatest present value

Suppose that you have just been employed as a consultant to help a company decide which of 3-options to take to maximize the value of the company over the next three years.

  What spends a dollar buying a first cup of coffee

In addition suppose that coffee costs $1 per cup, doughnuts cost $1 each and omar has a budget that he can spend only on doughnuts, coffee or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee.

  What is the velocity of money in the economy

Suppose that the money demand function takes the form (M/P)^d = L(i,Y) = Y/(5i) a. If output grows at rate g, at what rate will the demand for real balances grow (assuming constant nominal interest rates) b. What is the velocity of money in this econ..

  Determine what is each players dominant strategy

Use the information in the following table, which summarizes the payoffs (i.e., profit) to two firms that must decide between an average Firm 2 Average Quality High Quality Firm 1 Average Quality 600, 600 400, 1100High Quality 1100, 400 900, 900 a. ..

  Calculate the equilibrium number of cars commuting by route

Suppose you are hired as a traffic consultant to improve traffic patterns among commuters. How should these 5000 cars be allocated over the two routes in order to minimize the total amount of time cars are commuting

  Explain why production is exactly the same at a price ratio

Consider an economy with just one technique available for the production of each good, food and cloth: Good food Cloth labor per unit output 1 1 labor per unit output 2 1 a. if consumers insist on trading four units of food for five units of cloth, w..

  What is future worth of an equal monthly series of payments

a. What will $35,000 deposited today be worth in 10 years at 12% compounded annually b. What is $14,000 worth today if deposited for 5 years at 4% compounded monthly c. What will $124,000 deposited today be worth in 10 years at 10% compounded daily

  Find the p-value of the test

A manufacturer producing ball bearings claims that the mean weight of ball bearings produced is 5 ounces. The distribution is known to be normal with standard deviation 0.1 ounces. A random sample of 16 ball bearings is taken and their mean weight..

  Determine the boundaries of the three stages of production

L Q MPL APL 1 3 +3 3 2 6 +3 6 3 16 -10 -5.33 4 29 -13 -7.25 5 43 -14 -8.6 6 55 -12 -9.17 7 58 -3 -8.29 8 60 2 7.5 9 59 -1 -6.56 10 56 -3 -5.6 b). plot the (i) total product, (ii) marginal product, (iii) average product functions.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd