MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Question
Chapter 13, Problem 4CACQ
a.
To determine
To find: The number of potential connection service does this network provide.
b.
To determine
To explain: Whether the firm will get profit by building the network.
c.
To determine
To explain: Whether the firm will get profit by building the network.
d.
To determine
To explain: The effect on the number of potential connection service if one additional user join the network.
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Students have asked these similar questions
A firm is contemplating the establishment of a potential two-way network linking 100 users. A feasibility study reveals that each user is willing to pay an average of $1 for each potential connection service provided by the network. If the total cost of establishing the network is $500,000, should the firm establish the network? Explain.
Consider the following network representation of a transportation problem.
60
60
Des Moines
25
15
Jefferson
City
9
8
Kansas
City
20
8
10
40
Omaha
26
St. Louis
55
Supplies
Demands
The supplies, demands, and transportation costs per unit are shown on the network. What is the optimal (cost minimizing) distribution plan?
Amount
Jefferson City-Des Moines
0
0
Jefferson City-Kansas City
5
45
Jefferson City-St. Louis
55
440
Omaha-Des Moines
25
Omaha-Kansas City
15
Omaha-St. Louis
Total
0
0
Cost
×
Although self‑driving cars are still not trusted by most consumers, demand for them among technology enthusiasts has encouraged auto manufacturers to invest huge sums of money into their development.
a. Self‑driving cars are currently on the
a.upward‑sloping
b.downward‑sloping
portion of the network demand curve.
b. Since every major automaker is investing in self‑driving technology, the industry
a.has not reached
b.has reached
its tipping point.
Chapter 13 Solutions
MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
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