Reference no: EM131253737
Problem 1: Consumer Surplus Application
Suppose that all consumers for a monthly internet service provider (ISP) haveidentical demand curves given by
p =5- 0.5y
where p is the price per TB (terabytes) and y is total TB used per month. The ISP charges a monthly ?xed amount, denote this F, plus an additional charge based on usage (= p*y). Assume that the pricing is also for fractional amounts of TB used ("pro-rate") - so if a consumer uses y =0.25TB in a month, they are charged 3 * .25 = $0.75 plus the ?xed monthly fee of F).
(a) If the ISP charges p = $3 per TB, but no additional ?xed monthly fee (F =0), how much will the consumer use in internet services each month?
(b) Suppose the ISP charges p = $0 per TB (that is, the plan allows unlimited use for one ?at fee) and a ?at monthly fee of F = $20, will the consumer purchase ISP services and how many TB per month will they use?
(c) What is the maximum amount the ISP could charge as a monthly fee (F)if it charges p = $1 per TB?
(d) Bonus: If the ISP wishes to maximize the revenues (= F +py), what fee and price should it set?
|
Firms plm implementation system
: Your friend has been appointed the project manager of your firm's PLM implementation system. What advice would you offer to help ensure the success of the project?
|
|
Please calculate component of gdp
: Please calculate each component of GDP (Consumption, Investment, Government Expenditures, and Net Exports) as well as the Total GDP for the year 2015.
|
|
Water world issues
: On January 1, 2018, Water World issues $24.2 million of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Water World intends to use the funds to build the world’s largest water avalanche and the “tor..
|
|
Way that the poem communicates its meaning to you
: Initial post: For this assignment, use the poem that was assigned to you in this week's quiz, and investigate its form using one or more of these elements of poetic form that you feel are particularly important in this poem (you do not need to di..
|
|
Determining the consumer surplus application
: Suppose that all consumers for a monthly internet service provider (ISP) haveidentical demand curves given by
|
|
Why might bargaining not be costless
: How would your answer to part (a) change if the waste reduces the profits for the fishing industry by $40,000? (Assume, as before, that the firm could eliminate the waste at a cost of $60,000 per year.)
|
|
What costs are associated with inflation
: What costs are associated with inflation? Explain at least 3 different costs that individuals or businesses experience when inflation rises.
|
|
Determining the type of unemployment
: Compare and contrast the three types of unemployment that are covered in Slides 8-10 of the Attend section. If you were a policy maker which type of unemployment would be most bothersome to you?
|
|
Prepare a single compound journal entry
: Journal entry: Used materials in production; $29000 in the Mixing Department, $8000 in the Packaging Department; $1200 in indirect materials (Prepare a single compound journal entry.)
|