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 4DQ
Sub part (a):
To determine
How fund is allocated for R&D.
Sub part (b):
To determine
How fund is allocated for R&D.
Sub part (c):
To determine
How fund is allocated for R&D.
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q
0
1
2
3
4
5
6
TFC
$5
5
5
5
5
5
5
TVC
$0
3
LO
5
9
16
25
36
MC
-
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4
7
9
11
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5
5
5
LO
5
5
5
A profit-maximizing firm should produce a quantity of
TR
$0
5
10
15
20
25
30
TC
$5
8
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14
21
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units. (Enter your response as a whole number.)
* CENGAGE MINDTAP
Critical Analysis Questions (Ch 11)
Back to Assignment
Attempts
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…
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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