Fred and his employer both know that Fred can generate $200,000 of profit per year for his company. After negotiations, they agree that he will earn $110,000 in annual compensation. What does this imply for the value of his outside or next best altermative? a. $0 b. $5,000 c. $IO,000 d.$20,000
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2 Fred and his employer both know that Fred can generate $200,000 of profit per
year for his company. After negotiations, they agree that he will earn $110,000 in annual compensation. What does this imply for the value of his outside or next best altermative?
a. $0
b. $5,000
c. $IO,000
d.$20,000
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- u.om/mod/quiz/attempt.php?attempt3D1579003&cmid%=812962&page%3D19 System (Academit oles of Microeconomics Spring20 fall20 Price MC ATC of P2 P3 stion Q, Q2 Q3 Quantity/time MR Refer to the above figure. Economic profits for this firm are Select one: O a. undetermined without more information. O b. zero. C. positive. O d. negative. pe here to search hpProduct-Product Analysis Given the following production possibilities when 3 units of X are used: Y2 Y1 Py: = $8 Py2 = $10 Px = $40 TFC = $20 24 15 6 14 6 18 1. What is the Yı intercept value for an isorevenue line of $150? 2. What combination maximizes revenue? 3. What profit was made at that combination?For the table given below. Calculate TC, AFC, AVC and MC and show diagrammatically. Q L TFC ($) TVC($) 19.53 1 200 50 38.16 2 200 100 55.90 3 200 150 72.80 4 200 200 104.17 6 200 300 132.50 8 200 400 157.99 10 200 500 191.36 13 200 650 219.44 16 200 800 249.61 20 200 1000 277.32 25 200 1250 295.76 30 200 1500
- e. Compute the range of optimality for the objective function coefficients. (Assume you are an engineer working for a chemical production company. You are on the technical team that is responsible for deciding what to do about the dangerous chemical that your company is using to produce its best-selling chemical product. Recent reports have just made known the dangers of this chemical, and the company now needs to decide how to proceed. There are several options to consider: stop producing the harmful product altogether and take a hit on total profits; continue to make the product and sell it, like nothing's wrong, since the federal government has not cracked down. You could also spend money and engineering efforts in R&D to develop a safe chemical that would take its place. There is no guarantee that this would happen any time soon, but the scientists think it is realistically possible. To make matters worse, your biggest competitor produces this harmful product off-shore and is not hampered by the US regulations. If you stop producing this product…32.23 Millie Bush has written a best-seller. Revenues net of production costs are $3007¹/34¹/3 where T is the number of publicity trips Millie takes and A is the number of ads for the book that appear. Millie has to pay for all of her own publicity trips, which cost $100 each. Her publisher pays for the advertising, which costs $100 per ad. Revenues from the book are split equally between Millie and her publisher. Let T1 be the number of trips that Millie would choose to make in a Nash equilibrium where she chooses the number of trips and the publisher chooses the amount of advertising. Let T2 be the number of trips that Millie should make if trips and advertising are determined so as to maximize total profits net of trip and ad costs. (a) T1 = 1 and 72 = 1. (b) T1 = 1 and 72 = 2. (c) T1 = 2 amd T2 = 1. (d) T1 = 1 and T2 = 1/8. (e) T1 1/8 and T2 = 1.
- 26 %24 林 5. Refer to the accompanying table below. The marginal cost of the 3rd unit of this activity is: Units of Activity Total Cost Total Benefit O$ 1. 2. 3. 092$ $210 4. $150 $220 $210 $225 6. Multiple Choice $25 $20 < Prev 9 of 27 Next to search 立 to F7 F10 F11 F6 F8 6F. F5 F4 & %23Question An incumbent firm Pilly has a product that works well but has the possibility of causing side-effects to users. Both Pilly and an upstart firm Smirck are having the opportunity to develop a new product without the side effects. The following table shows the expected net return (after considering R&D costs, probability of success in product development, and future profits) for each firm under different scenarios. Smirck Invest Smirck Not Invest Pilly: $2.4 m Smirck: -$0.1 m. Pilly Invest Pilly: $4.9 m Smirck: $0 Pilly Not Invest Pilly: $3 m Smirck: $0.4 m Pilly: $5 m Smirck: $0 Assume that the two firms simultaneously choose whether to invest or not. What is the Nash Equilibrium of this game (that is, the action choices of the two firms in the Nash Equilibrium)? Would your answer be different if Pilly is the first mover and commits to its choice before Smirck makes its response (that is, a sequential-move game)? Equilibrium in the simultaneous-move game (No need for…1) Your firm must decide whether or not to introduce a new product. If you introduce the new product, your rival will have to decide whether or not to clone it. If you don't introduce the new product, you and your rival will earn $1million each. If you introduce the new product and your rival clones it, you will lose $5million and your rival will gain $20 million (you have spent a lot on R&D and your rival will not have to spend any R&D in order to clone it). If you introduce the new product and your rival does not clone, you will make $100million and your rival will make $0. a) Draw the extensive form (the tree diagram) of this game, carefully labeling each node and outcomes associated with each action. b) Should you introduce the new product? c) How would your answer change if your rival has "promised" not to clone your product? d) What would you do if patent law prevented your rival from cloning your product?
- You own an apartment building with 25 rental units renting at current market rate for $2500 a month each . Annual fixed costs for property tax , mortgage , insurance , and maintenance is $ 400,000 . Plus you have variable costs averaging $500/month per unit 1/ What is your total revenue ? 2/ What are your total costs ? 3/ What is your annual profit ? hand work only!! show the formula you usedEffie the entrepreneur takes 1.5 hours to bake a batch of cupcakes and she bakes 300 batches per year. She uses a special oven that will last forever and could be sold for $15,000 at any time. Effie could earn $25 per hour as a personal trainer. The interest rate is 8 percent. Given her current output level, her average cost is $. 33.5 40.5 37.5 41.5You are thinking about purchasing an elegant shirt by mail. Shirts Galore offer an unlimited return policy while Over the Tops will refund 80 percent of the value of the shirt if you return it. Which of the following statements is most likely to be true? Select one: O a. neither company's shirts are more likely to be high quality O b. Shirts Galore's shirts are more likely to be high quality, while Over the Top's shirts are less likely to be high quality O c. Shirts Galore's shirts are less likely to be high quality, while Over the Top's shirts are more likely to be high quality O d. Both companies' shirts are more likely to be high quality