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A firm that sells e-books – books in digital form downloadable from the Internet – sells all e-books relating to do-it-yourself topics (home plumbing, gardening, and so on) at the same price. At present, the company can earn a maximum annual profit of $25,000 when it sells 10,000 copies within a year’s time. The firm incurs a 50-cent expense each time a consumer downloads a copy, but the company must spend $100,000 per year developing new editions of the e-books. The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. Under marginal cost pricing, it could sell 100,000 copies. A.) In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself topics? B.) At the profit-maximizing quantity, what is the average total cost of producing e-books?
The timeline should also reflect that it costs $2,000 for the loan origination fees. 4. What is the rate of return on your investment now? use excel.
appliance store are unable to successfully compete also are driven out of business. why does Wal-Mart have a cost advantage over its competitor.
Elucidate Illustrate what you can do, if the best technology was used to produce the components of the system.
Discuss the individual firm's Marginal Cost, Averaged Cost and Average Variable Cost functions, and use this to calculate industry supply.
What price are individuals with $5,000 in the bank willing to pay for the insurance. Will those with $5,000 in the bank voluntarily purchase insurance.
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Illustrate what effect will this have on its optimal price.
The function for the net exports is NX=200-100e, where e, is the exchange rate, and the exchange rate is initially 1.0.
Dependency theory characterizes countries as being either in the center or on the periphery
Compute and plot yield spread (difference between yields to maturity of console and one-period bond). Is yield spread pro-cyclical or counter-cyclical.
Illustrate what varibles other than price appear to have the biggest impact on the demand for mcdonald's products. how much influence does the company have over these varibles.
Illustrate what ranges of the money growth rate (assuming positive values) would allow the Bank of Korea to achieve this objective.
Rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
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