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Online Tutors offers monthly access to students for either or both math or science tutors. A market study found that the served by Online Tutors can be divided into two types of students: students needing help with math, who are primarily interested in math tutoring but may be interested in some science tutoring, and students who are primarily interested in science tutoring but may need some math tutoring. The study further estimates that there are 300 students who fit the category of "students needing help with math" and 200 students who fit the category of "students needing help with science." Online Tutors estimated demand for each type of tutoring service by type of student is given below. All costs are fixed so that maximizing total revenue is equivalent to maximizing profit. The demand prices for monthly math and science tutoring services are given below Type of Student...............................Math Tutoring Only........................Science Tutoring Only In Need of Math Tutoring............................$100.......................................................$25 In Need of Science Tutoring..........................$50.......................................................$150
a. If the Online Tutoring decides to sell its tutoring services individually, what should it charge for math tutoring? What should it charge for science tutoring?
b. If Online Tutoring offers bundled services, what pricing would you recommend? What happens to its revenues if it uses bundling?
The United States is currently recovering from its bad recession in over twenty-five years. Applying the resource provided in this and earlier modules of course describe what factors or activities you think helped cause this economic condition.
Suppose you are currently earning $15 an hour. If the inflation rate over the current year is 10 percent and your firm provides a cost-of-living raise based on the rate of inflation, what would you expect to earn after your raise? If the cost-of..
La Yin likes brownies (B) and chocolate bars (C) and is on the indifference curve: U(B,C) = B^2C. Consider the follwing bundles for La Yin. Bundle A B = 5, C = 10 Bundle B B= 3, C= 4 Bundle C B= 2, C= 9 Bundle D B= 5, C= 5
Assume that a national restaurant firm called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $300,000 of equipment and furnishings. To help partially defray the cost of this expa..
Identify whether the variables in your model suffer from non-stationarity. Discuss the possible implication of non-stationarity for your model and how this problem could be addressed.
Cameron is an investor trying to decide among the following three different investment options. Option A: Price today: $1000 One year from today Cameron will receive one of the following payments: $1,250 with a probability of 90% $1,000 with a pro..
Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200..
Blair has decided to manufacture the sub assemblies within the company and must now consider whether to rent one centerly located facility or to rent three separate facilities, each located near one of the assembly plants.
tax-exempt debt currently requires an interest rate of 6.2percent and its target capitalstructure call for 60 percent debt financing and 40 percent equity(fund capital) financing The estimate cost ofequity for selected invester-owned health care c..
The European Engine Corporation is a multi-national producer of small gasoline and diesel motors. European Engine Corporation has estimated the following cost experience for a new 3.5 hp engine over a sample of 122 observations,
The ABC Company deposited $100 000 in a bank account on June 15 and withdrew a total of $115 000 exactly one year later. Compute: (a) the interest which the ABC Company received from the $100 000 investment, and (b) the annual interest rate which ..
In a country, output is produced with labor and physical capital. The production function in per-worker terms is y=k^1/2. The depreciation rate is 2%. The investment rate (&) is determined as follows: &=0.2 if y
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