Business, 17.12.2019 07:31 ijohnh14

Pindyck & rubinfeld, 8e. ch. 11, #9. you are an executive for super computer, inc. (sc), which rents out super computers. sc receives a fixed rental payment per

time period in exchange for the right to unlimited computing at a rate of p cents per second. sc has two types of potential customers of equal number—10 businesses and 10 academic institutions. each business customer has the demand function q = 10-p, where q is in millions of seconds per month; each academic institution has the demand q = 8 - p. the marginal cost to sc of additional computing is 2 cents per second, regardless of volume.

(a) suppose you could separate business and academic customers. what rental fee and usage fee would you charge each group? what would be your profits?

(b) suppose you were unable to keep the two types of customers separate and charged a zero rental fee. what usage fee would maximize your profits? what would be

your profits?

(c) suppose you set up one two-part tariff—that is, you set one rental and one usage fee that both business and academic customers pay. what usage and rental fees

would you set? what would be your profits?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 05:30

Eliza works for a consumer agency educating young people about advertisements. instead of teaching students to carefully read advertisement claims, she encourages them to develop a strong sense of self and to keep their life goals and dreams separate from commercial products. why might eliza's advice make sense?

Answers: 2

Answer

Business, 22.06.2019 21:40

Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?

Answers: 2

Answer

Business, 22.06.2019 22:00

Brody corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. beginning inventory for january consisted of 1,050 units that were 65% completed. 10,900 units were started into the process during january. on january 31, the inventory consisted of 500 units that were 50% completed. what would be the equivalent units for direct materials cost using the weighted average method?

Answers: 2

Answer

Business, 22.06.2019 22:30

When the price is the equilibrium price, we would expect there to be a causing the market to put pressure on the price until it went back to the equilibrium price. a. above; surplus; upward b. above; shortage; downward c. below; surplus; upward d. below; shortage; downward e. above; surplus; downward?

Answers: 2

Answer

You know the right answer?

Pindyck & rubinfeld, 8e. ch. 11, #9. you are an executive for super computer, inc. (sc), which...

Questions