Module 6 Discussion

This case study focuses on the pay-for-viewing TV (Pay TV in short) industry in Australia. Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near-total dominance in the market. There were other players such as Optus TV and iiNet, however, their market shares were dwarfed by that of Foxtel. IBISWorld reported that Foxtel occupied 92.6% of the market share in 2013. Then in March 2015, Netflix Australia was launched, opening the gate for an influx of other subscription video-on-demand (SVOD) services. These new services were internet-based, which differed from Foxtel’s model of cable TV. Nevertheless, they competed fiercely for subscribers. Fast forward to the present day (October 2021), Australian consumers now have a wealth of choices of the content offered by Foxtel, Netflix, Stan, Amazon Prime, Apple TV, Disney+, Optus Sport, and the recently launched Paramount+ (launched in August 2021). Questions: Draw a firm diagram to illustrate…

Please type your NUMERICAL answer in the space below. ENTER ONLY THE NUMBER. IF answers are in decimals, please round the number to one decimal point. Winterfell Cable TV pays $100,000 per year to earn exclusive rights to air a premium sports channel. There are two types of subscribers in Winterfell: 3,000 die-hard sports fans who will pay as much as $200 a year for the new channel and 20,000 occasional sports viewers who will pay as much as $25 a year for a subscription to it. a) If Winterfell Cable is unable to price discriminate, what price will it charge and how much are its profits? Price Profits= b) If Winterfell Cable is able to price discriminate, how much will it make in profits? Profits= What is the deadweight loss associated with the nondiscriminating pricing policy compared to the price c) discriminating policy? DWL=

Monopolistic competition creates inefficiency because of the markups and excess capacity. The graph below depicts the situation for a hypothetical monopolistically competitive firm. The curves included in the graph are demand (D), marginal revenue (MR), average total cost (ATC), and marginal cost (MC). The graph is not graded, but you can move the point labeled P to help you find the numeric values to answer the questions. Price $ 80 MC M 45 P D ATC Quantity What is the size of the markup on the price? Number $0 What is the size of the excess capacity? Number Units

BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form. Form Type Mix of Forms Form Cost A 0.2 $0.80 B 0.2 $0.40 C 0.2 $0.40 D 0.2 $1.60 E 0.2 $0.80   The expected cost of digitizing a form is  $__________-   .   Suppose the client and BPO agree to a deal, whereby the client pays BPO to digitize forms. The price of each form processed is equal to the expected cost of the form that you calculated in the previous part of the problem. Suppose that after the agreement, the client sends an equal mix of forms of types D and E only. The expected digitization cost per form of the forms sent by the client is $___________   . This leads to an expected loss of $__________ per form for BPO. (Hint: Do not round your answers. Enter the loss as a positive number.)

Give only typing answer with explanation and conclusion    The market demand for a monopoly firm is estimated to be:   Qd = 100,000 - 500P + 2M + 500PR   where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be   AVC = 520 - 0.03Q + 0.000001Q2   Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is   $80.   $100.   $260.   $520.   $560.

What economic formula or graph does the Anti-Trust Department follow before they decide to break up a monopoly?       Multiple Choice   They look to see if MC=MR is beyond $10 billion.      They try to calculate if price elasticity is less than .25 and inelastic.   They do not use any commonly known formulas or graphs. Often times it is based on normative economics and/or it could be politically motivated.   The number of registered consumer complaints must be beyond 10,000.

Coastal Soda Sales has been granted exclusive market rights to the upcoming Beaufort Seafood Festival. This means that during the festival Coastal will have a monopoly, and it is anxious to take advantage of this position in its pricing strategy. The daily demand function is p = 2 – 0.0004x and the daily total cost function is C(x) = 500 + 0.2x + 0.0001x² where x is the number of units. (a) Determine Coastal's total revenue, R(x), and profit functions, P(x), in dollars. R(x) = P(x) (b) What profit-maximizing price per soda should Coastal charge? $ per soda How many sodas per day would expect to sell at this price? sodas per day What would be the daily profits? $ per day (c) If the festival organizers wanted to set an economically efficient price of $1.25 per soda, how would this change the results from part (b)? (Round your answer for daily profits to the nearest cent.) sodas per day it would expect to sell sodas per day daily profits per day Would Coastal be willing to provide sodas…

How do oligopolies harm society, and what legislations(in the UK) are in place to protect the process of competition? Also, explain why oligopolies cannot maintain monopoly profits and provide an example drawing on prisoner’s dilemma within a specific industry of your choice. (approx. 800 words)

What is the difference between a price analysis and a cost analysis

Assume that Gas & Minerals is the only copper mining firm in Chile. The national demand for copper in thousands of tonnes per month is: q^d(p) = 15 - pThe total costs in millions of dollars are: c(q) = 5q(a) What would be the profit-maximising level of production for this firm? Determine the monopoly price and quantify the profits. Graph the demand, marginal revenue and marginal cost, identifying their values along with determining the social loss generated and identifying it in the graph above. Assume now that due to a bad internal restructuring, the operations manager was fired and a professional with little mining experience was hired. The new manager does not know environmental protocol and mining waste (tailings) has gotten out of control and has been dumped into a river. This generated a negative externality on copper production. The estimated damage is US$5 million per 1,000 tonnes.(b) Obtain the social marginal cost of this mining activity.(c) What level of production will…

In the 1928, Knoxville was served by a single railroad line. Because alternative forms of transportation were not close substitutes for rail transportation in 1928, this railroad had a transportation monopoly in Knoxville. The estimated monthly fixed cost associated with operating a railroad was $1,200. In addition, there was a constant average variable cost and marginal cost of $0.02 per ton-mile associated with the railroad's operation. The estimated monthly demand for transportation on the railroad was: Qd = q = 80,000 - 1,000,000P where Qd was the monthly quantity demanded in ton-miles and P was the price per ton-mile in dollars. Based upon the above equation, answer the following questions: a. What is the profit-maximizing price and quantity? b. Would a private company build the railroad? c. What is the socially optimal price and quantity?

A monopoly profit-maximizes by selling 700 tables each hour. At this level of production, it has marginal revenue of $40, average revenue of $50, marginal cost of $40 and average total cost of $42. What is the monopoly's profit-maximizing price assuming they are not price discriminating? Type your numeric answer and submit

A monopoly sells 30 units of output when price Ksh 12 and 40 units when price is Ksh 10. If its demand schedule is linear, what is the specific form of the actual demand function? Use this function to predict quantity sold when price is Ksh 8. What domain restrictions would you put on this demand function?

the revenue function for making the worst widget is r(x)= 15.01x-100. The cost function for producing this product is represented by the function c(x)=15x+19900. The worst widget makers turn out 500,000 widgets every year. how many years will pass before the worst widget company is profitable?

Which of the following is NOT a multinational corporation: a) Apple b) Disney c) McDonalds d) Walmart

In 2009, Detroit, Michigan experienced an aggressive recession as compared to the rest of country. With unemployment rates topping 15%, the city was faced with many challenges financially, economically, and socially. In addition to the financial challenges, the city was also experiencing political instability and corruption. Various major city officials were being investigated for fraud, bribery, and other criminal charges. Spirit Electric, operating as a natural monopoly, was the only company in the area providing electric services to Detroit households. Like many other companies, it was experiencing financial difficulties and could no longer continue without some intervention. This was mainly due to high operating costs, foreclosures in the area, and the fact that many households were not paying their bills. As a result, Spirit Electric came to a standstill in the latter part of 2009. Matt Green, Spirit Electric CEO, gathered the Board of Directors and determined that the company…

In 2009, Detroit, Michigan experienced an aggressive recession as compared to the rest of country. With unemployment rates topping 15%, the city was faced with many challenges financially, economically, and socially. In addition to the financial challenges, the city was also experiencing political instability and corruption. Various major city officials were being investigated for fraud, bribery, and other criminal charges. Spirit Electric, operating as a natural monopoly, was the only company in the area providing electric services to Detroit households. Like many other companies, it was experiencing financial difficulties and could no longer continue without some intervention. This was mainly due to high operating costs, foreclosures in the area, and the fact that many households were not paying their bills. As a result, Spirit Electric came to a standstill in the latter part of 2009. Matt Green, Spirit Electric CEO, gathered the Board of Directors and determined that the company…

In 2009, Detroit, Michigan experienced an aggressive recession as compared to the rest of country. With unemployment rates topping 15%, the city was faced with many challenges financially, economically, and socially. In addition to the financial challenges, the city was also experiencing political instability and corruption. Various major city officials were being investigated for fraud, bribery, and other criminal charges. Spirit Electric, operating as a natural monopoly, was the only company in the area providing electric services to Detroit households. Like many other companies, it was experiencing financial difficulties and could no longer continue without some intervention. This was mainly due to high operating costs, foreclosures in the area, and the fact that many households were not paying their bills. As a result, Spirit Electric came to a standstill in the latter part of 2009. Matt Green, Spirit Electric CEO, gathered the Board of Directors and determined that the company…

In 2009, Detroit, Michigan experienced an aggressive recession as compared to the rest of country. With unemployment rates topping 15%, the city was faced with many challenges financially, economically, and socially. In addition to the financial challenges, the city was also experiencing political instability and corruption. Various major city officials were being investigated for fraud, bribery, and other criminal charges. Spirit Electric, operating as a natural monopoly, was the only company in the area providing electric services to Detroit households. Like many other companies, it was experiencing financial difficulties and could no longer continue without some intervention. This was mainly due to high operating costs, foreclosures in the area, and the fact that many households were not paying their bills. As a result, Spirit Electric came to a standstill in the latter part of 2009. Matt Green, Spirit Electric CEO, gathered the Board of Directors and determined that the company…

In 2009, Detroit, Michigan experienced an aggressive recession as compared to the rest of country. With unemployment rates topping 15%, the city was faced with many challenges financially, economically, and socially. In addition to the financial challenges, the city was also experiencing political instability and corruption. Various major city officials were being investigated for fraud, bribery, and other criminal charges. Spirit Electric, operating as a natural monopoly, was the only company in the area providing electric services to Detroit households. Like many other companies, it was experiencing financial difficulties and could no longer continue without some intervention. This was mainly due to high operating costs, foreclosures in the area, and the fact that many households were not paying their bills. As a result, Spirit Electric came to a standstill in the latter part of 2009. Matt Green, Spirit Electric CEO, gathered the Board of Directors and determined that the company…

According to International Data Corporation (IDC), the number of worldwide smartphone owners will soon exceed 3 billion. That number is expected to grow at nearly 10 percent per year for the next five years. While the actual cost of a smartphone is about $300, wireless carriers in many countries offer their customers a "free" smartphone with a two-year wireless service agreement. This pricing strategy is consistent with which of the following: Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. Two-part pricing Bundling Cross subsidization Second-degree price discrimination

None

A monopoly that produces beer has estimated the following demand function: 1 p(q) = 300 q + 20t 3000 The variables are defined as follows: p is the price of a liter of beer, q is production, and t is the monthly average temperature in degrees centigrade. The estimated cost of producing a liter of beer is $12. Below is a table with the average temperature recorded in Arizona during March and April. Month Temperature March 35 April 38 a) Find the optimal price for the monopolist in each month b) Calculate the Mark-up for April and according to it estimate the elasticity of demand. Comment on the results. C) Determine the efficiency loss in the month of March.

Explain the Trial-and-error method?

An example of technology is a) earning plumbing certification Ob) new patent Oc) degree in finance Od) new school

Don't use Ai

Cigarland is a Latin American country producing cigars. If the unit cost is 11 dollars and firms' mark up is 20 per cent, calculate the price of each cigar. Answer the question by providing just the appropriate number of dollars in the box below to one decimal place (eg 12.3). Do not enter a comma, space, letters, words or symbols (such as $). Failure to follow these instructions may result in your answer being marked as incorrect. Next page > < Previous page

Assuming your city government has been contracting with a single garbage collection firm that has been granted an exclusive franchise, the sole right, to pick up trash within the entire city limits. The city government has estimated the price residents are willing to pay for various numbers of garbage collections per month and the total cost facing the garbage collector per resident as shown in the following table: Pickup Price per Total Pickup (Demand) Average Marginal Profit Total Cost Cost (MC) Marginal Total (Q) Revenue Cost Revenue (TR) (MR) (TC) (ATC) $4.20 $3.20 1 3.80 4.20 2 3.40 5.60 3 7.80 2.60 10.40 15 2.20 13.40 6 1.90 16.80 (a) Please complete the table above (b) Given that the current garbage collection firm has a monopoly in garbage collection services, what is the current number of collections (Q) residents receive per month and the price charged residents (P) for each collection? Please explain (c) If competitive bidding were allowed and therefore a competitive market…

Question 24 Monopoly is characterized by unique products. market entry and exit are difficult or impossible. non-price competition not necessary. All of these

Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C(x), the cost of producing x items (of whatever they are selling). This question deals with just the cost function C(x).   Problem Set question:   The cost, in dollars, of producing x units of a certain item is given by C(x)=5x−4x−1−−−−√.   Find the production level that minimizes the average cost per unit.     The number of units that minimizes the average cost is .