Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 15, Problem 1P
Sub part (a):
To determine
The expected rate of returns and the undertaking of projects.
Sub part (b):
To determine
The expected rate of returns and the undertaking of projects.
Sub part (c):
To determine
The expected rate of returns and the undertaking of projects.
Sub part (d):
To determine
The expected rate of returns and the undertaking of projects.
Sub part (e):
To determine
The expected rate of returns and the undertaking of projects.
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* CENGAGE MINDTAP
Critical Analysis Questions (Ch 11)
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Keep the Highest /3
6. Critical analysis Q13
Gouge-em Cable Company is the only cable television service company licensed to operate in Backwater County. Most of its costs are access fees and
maintenance expenses. These fixed costs total $100,000 monthly. The marginal cost of adding another subscriber to its system is constant at $4 per
month. Gouge-em's demand curve can be determined from the data in the accompanying table.
Complete the following table by computing the total revenue, total cost, and profit at each of the various subscription prices.
Number of Subscribers
Total Revenue
Fixed Cost
Total Cost
Profit
Subscription Price
(Thousands Per Month)
($, Thousands) (S, Thousands) (S, Thousands) (S, Thousands)
$25
20
$100
20
40
$100
15
IS
$100
60
10
80
$100
100
$100
IS
150
15A
$100
thousand.
Gouge-em will charge
v for its cable services, earning them a profit of $
$1
Now suppose the Back
unty Public…
You are the owner and only employee of a company that sets odds for sporting events. Last
year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To
start this business you invested an amount of your own capital that could pay you a return of
$20,000 a year.
Your economic profit last year was
O $50,000
O $60,000
O $10,000
O $30,000
7. Find TC, AFC, AVC, AC, and MC from the following
table: (LO11-3)
Units
0
-~ m +5
2
3
$200
200
200
200
200
200
CONDAIRE
VC
$0
20
30
35
50
80
Chapter 15 Solutions
Economics (Irwin Economics)
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