Which of the following typically represents the cost structure of copyright goods? Select one: O a Low fixed costs of production and high marginal costs for reproduction O b. High fixed costs of production and low marginal costs for reproduction OC Low fixed costs of production and low marginal costs for reproduction O d. No fixed costs of production and high marginal costs for reproduction
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- Are you allowed to copy anything that's in Wikipedia because it's an online encyclopedia? O Yes, encyclopedias are considered fair use O No, you must cite all sources1. Rio live in a town with 300 adults and 200 children, and he is thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000 except all cost like maintenance costs until two years, but selling an extra ticket has zero marginal cost. Here are the demand schedules for his two types of customer: Price Adults Children $10 9 100 8 200 7 300 6 300 300 100 4 300 200 300 200 300 200 1 300 200 300 200 a. To maximize profit, what price would he charge for an adult ticket? For a child's ticket? How much the profit? (Hint: total cost for this year include fixed cost) b. Suppose in this year, the city council passes a law prohibiting him from charging different prices to different customers. What price does he set for a ticket now? How much profit now? (Hint: when quantity of produced yield maximum revenue or the sum of these both revenues sastify)1. Rio live in a town with 300 adults and 200 children, and he is thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000 except all cost like maintenance costs until two years, but selling an extra ticket has zero marginal cost. Here are the demand schedules for his two types of customer: Price Adults Children $10 9. 100 8 200 7 300 300 300 100 4 300 200 300 200 300 200 1 300 200 300 200 c. Suppose next year government imposes tax equals $4 for selling an every extra ticket, what price would he charge for an adult ticket? For a child's ticket? How much the profit? Assume the law prohibiting him from charging different prices to different customers doesn't exist. (Hint: fixed cost doesn't include)
- 1. Caribbean economies tend to rely heavily on the Tourism sector, offering Sun, Sea andSand as the “tourism product” for which tourists purchase hotel accommodationsto enjoy. Hoteliers offer these services and are therefore major “suppliers” in thismarket.In 2017 however, several natural disasters affected the Caribbean, resulting ineconomic, environmental and human losses. In order to analyze the impact ofthese Natural Disasters on the hotel industry, answer the following questions. a. With the use of an appropriate demand and supply diagram for hotel rooms(accommodation), illustrate and explain how the news of an impending Tropical Stormto the Caribbean region would affect the market price (hotel rates) and quantity tradedof hotel rooms.b. Following the destruction of hotel infrastructure from the passage of the Hurricanes, usean appropriate demand and supply diagram for hotel rooms (accommodations) toillustrate and explain the impact of the Hurricanes on the market price and…Quantity (in gallons) Total Price Revenue $8 $0 50 7 350 100 600 150 750 200 4 800 250 3 750 300 600 350 1 350 400 Imagine a small town in a remote area where only two residents, Maria and Miguel, own dairies that produce milk. Their respective dairies are equal in size. Each week Maria and Miguel work together to decide how many gallons of milk to produce and what price to charge. To keep things simple, suppose that Maria and Miguel can produce as much milk as they want without cost so that the marginal cost is zero and there are no fixed costs. The weekly town demand schedule and total revenue schedule for milk is shown in the table above. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from operating as a cartel. Assuming that each producer can only modify quantity in increments of 50, which of the following is consistent with the Nash equilibrium for this scenario? Maria will charge a price of $5 for each gallon. Miguel will sell 100 gallons. Milk will…3. The Placebo Drug Company holds a patent on one of its discoveries. (a) Assuming that the production of the drug involves rising marginal cost, draw a dia- gram to illustrate Placebo's profit-maximizing price and quantity. Also show Placebo's profits. (b) Now suppose that the government imposes a tax on each bottle of the drug produced. On a new diagram, illustrate Placebo's new price and quantity. How does each compare to your answer in part (a)? (c) Although it is not easy to see in your diagrams, the tax reduces Placebo's profit. Explain why this must be true. (d) Instead of the tax per bottle, suppose that the gov- ernment imposes a tax on Placebo of €110 000 regard- less of how many bottles are produced. How does this tax affect Placebo's price, quantity and profits? Explain.
- TPrice - Marginal Cost 40 30 20 Demand 100 150 200 Quaxtity Marginal Revenue 200 units of output and a price of $20 per unit 100 units of output and a price of $20 per unit O 200 units of output and a price of $40 per unit O 100 units of output and a price of $40 per unit O 150 units of output and a price of $30 per unit3. The Placebo Drug Company holds a patent on one of its discoveries. (a) Assuming that the production of the drug involves rising marginal cost, draw a diagram to illustrate Placebo’s profit-maximizing price and quantity. Also, show Placebo’s profits.(b) Now suppose that the government imposes a tax on each bottle of the drug produced. On a new diagram, illustrate Placebo’s new price and quantity. How does each compare to your answer in part (a)?(c) Although it is not easy to see in your diagrams, the tax reduces Placebo’s profit. Explain why this must be true.(d) Instead of the tax per bottle, suppose that the government imposes a tax on Placebo of ¿110 000 regardless of how many bottles are produced. How does this tax affect Placebo’s price, quantity, and profits? Explain.May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)
- The state of Colorado requires oil and gas companies who use fracking techniques to retune the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefits (in dollars) of this policy. Calculate the marginal cost and the marginal benefit at each quantity (acre) of land restored. See Production. Costs and Industry Structure if you need a refresher on how to calculate marginal costs and benefits. If we apply marginal analysis, what is the optimal amount of land to be restored?WHATSAPP now zunaira gani @ Gos$ip Queen'$ © 1,2 slides wali problems bruechap003 [Compatibility Mode] - PowerPoint (Product Activation Failed) FILE HOME INSERT DESIGNI TRANSITIONS ANIMATIONS SLIDE SHOW REVIEW VIEW FOXIT READER PDF Sign in X Cut E Layout - A DOO- |AL飞中4G %7n{ E Arrange Quick A A E-E- EE IIA Text Direction Shape Fill- A Find 自Copy Paste H Align Text - P Shape Outline- a Replace - 自Reset New BIUSabe AV - Aa - Format Painter Slide- ESection- a Convert to SmartArt Styles- O Shape Effects D Select - Clipboard Slides Font Paragraph Drawing Editing 8 10 E Question 2: 11 E 12 E 2. What effect will each of the following have on the demand for small automobiles such as the Suzuki Alto and 13 14 E Honda N one? 15 E a. Small automobiles become more fashionable. 16 E b. The price of large automobiles rises (with the price of small autos remaining the same). c. Income declines and small autos are an inferior good. d. Consumers anticipate that the price of small autos will greatly…D. Pollution problem You know the marginal cost of reducing pollution for four factories. Each unit of pollution can be eliminated according to the following marginal costs. A B C D First Unit $65 $15 $30 $10 Second Unit $75 $55 $65 $30 Third Unit $85 $85 $110 $40 Fourth Unit $120 $155 $120 $60 1. The total cost of Firm D eliminating 4 units of pollution 2. Determine the total cost of each firm eliminating one unit of production. 3. The community has decided that the managers of the firms are allowed to produce a total of 4 units of production. Identify the firm(s) that will pollute.