College gets more expensive – again. tuition at public four-year colleges rose 2.9 percent this year, to an average of $8,893 per year. out-of-state students pay an average of $22,203 to attend. private four-year colleges also saw tuition increases of 2.9 percent – to an average of $30,094. these tuition hikes come on the heels of a 4.5 percent jump in 2012-13 and 8.5 percent in 2011-12. tuition prices have been outpacing general inflation rates for many years. source: the college board if tuition for private four-year colleges was $10,337 in 2010-2011, how much was it in: instructions: enter your responses rounded to two decimal places. (a) 2011-12? $ (b) 2012-13? $ (c) 2013-14? $

If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.