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A local video store estimates that their average customer's demand per year is P = 3.5 - .05Q (all customers are identical), and knows that the marginal cost of each rental is $0.5. How much should the store charge for an annual membership (M) and how much for each rental (R) if it uses an optimal two-part pricing strategy?A. M = $4.5 and R = $2B. M = $5 and R = $1C. M = $9 and R = $0.5D. M = $12.25 and R = $0
What are the advantages of doing business as a limited liability company? That is, if you want to open a small business, you have several options---sole proprietorship, partnership, LLC, etc. Why might you select a LLC over the other options..
in order to perform a certain printing job john needs a printer and 100 units of printing paper.suppose that the value
Judy has decided to allocate exactly $500 to college textbooks every year, even though she knows that the prices are likely to increase by 5 to 10 percent per year and that she will be getting a substantial monetary gift from her grandparents next ye..
If the elasticity of crime with respect to the number of police is estimated to be -0.5 and the number of police fell by 5% and annual expenditures on police are equal to $60 billion and the cost of crime to victims is estimated to $400 billion then ..
The only DVD rental club available to you charges $4 per movie per day. If your demand for movie rental is P=20-2Q, where P is the rental price and Q is the quantity demanded, what is the maximum annual membership fee you would be willing to pay to j..
suppose that the reserve requirement is 10 percent and the balance sheet of the peoples national bank looks like the
1. a consumer splits their income equally between two goods. if the price of one good increases by 10 and their income
a. do you agree or disagree with the statement that a monopolist always charges the highest possible price.? explain.
Suppose a 10% change in the price of gasoline decreases the quantity of gasoline demanded by .5%. Calculate the elasticity of demand and determine whether the demand is elastic, inelastic, or unit elastic.
What is meant by the marginal rate of substitution between present and future consumption?
the palms dry cleaning shop in fort lauderdale florida faces a highly seasonal demand for its services as the
an education expert is researching teaching methods and wishes to interview teachers from a particular school district.
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