User Account

All Pages

What is the optimal price

Assignment Help Business Management
Reference no: EM132155388

Suppose you are advising Verizon on how to price their mobile phone contracts. There is only one consumer in the world and her demand is Q = 10 - P , where Q is the number of minutes demanded and P is the price per minute. The marginal cost of each minute is 0.

(a) If you charge a price per minute, what is the optimal price?

(b) If you charge a price per minute of 0, which is the optimal monthly fee? Assume that Q, minutes demanded, is a continuous variable. 

Manufac Inc. produces industrial equipment using mainly Labor and Capital. It is currently using K = 1 (one unit of capital is 1000 machine-hour per day) and L = 20 (one unit of labor is 1000 man-hour per day). You estimated that its production function is Q = 100LK. The price per unit of labor is MCL = 20 ($000) and the price per unit of capital is MCK = 100 ($000).

(a) Is Manufac Inc. using the right mix of inputs? Should Manufac Inc. invest in more machines?

(b) Keeping output constant at 2000, how much labor and capital should Manufac Inc. choose?

Reference no: EM132155388

Questions Cloud

Prepare your reflections about the movie : Prepare your reflections about the movie and its implication for present-day energy policy. Visit the website for the IPCC (International Program for Climate).
Understanding buyer behaviour : Your new Marketing Director says, “I believe that people go through a deeply involved decision making process when deciding on which brand of shampoo to buy.
Buyers and sellers of a good and the product sold : 1.) When there are many buyers and sellers of a good and the product sold is identical across firms:
Discuss two actions that can be taken by your team : What instructional methods and types of assessment would you include in the instructional unit?
What is the optimal price : There is only one consumer in the world and her demand is Q = 10 - P , where Q is the number of minutes demanded and P is the price per minute.
What benefits and challenges come with family volunteers : Describe ways you see utilizing families in the learning environment. What benefits and challenges come with family volunteers?
Amount of ownership of foreign debt : Suppose a law is passed in Congress limiting the amount of ownership of foreign debt? Based on this we would expect
Define the law of supply : 1. a) Define the Law of Supply? Give an example of the Law of Supply - use two to four sentences to explain your example.
Measure the economic welfare of the people in a society : How would you change what is in included or not included in the measurement of GDP to better measure the economic welfare of the people in a society?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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