LSC CUMBERLAND EC202 MICRO>PKG<
21st Edition
ISBN: 9781260586992
Author: McConnell
Publisher: MCG
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Chapter 18, Problem 11DQ
To determine
The differences between insurable risk, and uninsurable risk and functions of economics profit.
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* CENGAGE MINDTAP
Critical Analysis Questions (Ch 11)
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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…
If the discount rate on 3-month commercial paper is 4.9% while the yield on 3-month CDs is 5%, the real difference between
them in basis points (in terms of yield) is:
(You may need to look up how many basis points there are in a percentage point)
Select one:
a.
39
O b. 0.39
O c. 0.1
O d. 10
O e. 3.9
businessman. owns a florist shop.
He buys each bunch of flowers for
R O1.5 and special wrapping paper for R,03 per toll.
Each roll of wrapping
paper will wrap 350 bunches of flowers
Rent of his premises is R.O 800 per
month and he pays monthly insurance of R.0 250.
-He sells each bunch of
Rowers for R.O 2.50, Calculate his break Even Point and also how much
Profit would he make if he has sold 2,50¢ bunch of flowers?
Chapter 18 Solutions
LSC CUMBERLAND EC202 MICRO>PKG<
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