
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Additional questions:
Supposed you and your friends decide to rent the four bedroom apartment and subscribe to cable. The average fixed cost per roommate will be____?
If only 3 people moved into the four bedroom apartment, the average fixed cost of rent and cable will be _____, which means that you will have to pay _____ of just the rent on your own

Transcribed Image Text:You've decided to rent an apartment with your friends. Your parents will cover your portion of the rent up to $250 (but not any
additional expenses). Your monthly share of the rent will depend on the number of roommates. The table below shows the costs
associated with the number of bedrooms in the apartment. Assume one person per bedroom.
Number of bedrooms
Rent
$400
$600
$750
$900
Cable/Internet
2
3
4
$60
$60
$60
$60
Which of the following size apartments can you rent so that your parents pay the entire portion of your rent?
Choose one or more
A. one bedroom
B. two bedrooms
C. three bedrooms
D. four bedrooms
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Â
A.
between​ 37,000 and​ 49,000
Â
B.
more than​ 49,000
Â
C.
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Â
D.
more than​ 37,000
Â
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Â
A.
between​ 25,000 and​ 49,000
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between​ 25,000 and​ 37,000
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less than​ 37,000
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more than​ 37,000
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more than​ 49,000
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less than​ 25,000
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Q. 2
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Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of renting the pool during the 10-week period for which Hannah and Kathleen would need it is $1,700. The pool would also charge Hannah and Kathleen an admission, towel service, and life guarding fee of $7 per student, and Hannah and Kathleen estimate an additional $5 cost per student to hire several assistants. Hannah and Kathleen plan to charge $75 per student for the 10-week swimming class.
a. How many students do Hannah and Kathleen need to enroll in their class to break-even?
b. If Hannah and Kathleen want to make a profit of $5000 for the summer, how many students do they need to enroll?
c. Hannah and Kathleen estimate that they might not be able to enroll more than 60 students. If they enroll this many students, how much would…
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Continental Long Distance Telephone Service offers an optional package for in-state calling whereby each month the subscriber gets the first 50 min of in-state calls free, the next 100 min at $0.25/min, and any additional time at the normal rate of $0.50/min. Draw the budget constraint for in- state phone calls and the composite good for a subscriber with an income of $400/mo.
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Answer completely.
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