Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Suppose the marginal cost of providing telephone services in a small town called Wilwaukee is zero. Wichigan Communications (WC) is the only provider of telephone services in Wilwaukee. WC charges a price (P) based on the number of phone calls (Q): $1.00 per call for the first 60 calls, 80 cents per call for the next 40 calls, and 50 cents per call for all remaining calls. The demand for phone calls by customers of WC is represented by P = 1.8 - 0.01Q.

Answer questions (a) and (b) below:

a) Calculate the magnitude of WC's producer surplus in Wilwaukee's telephone industry.

b) Calculate the deadweight loss in Wilwaukee's telephone industry

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92837789
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Economics

Consider a machine with exponential reliability model

Consider a machine with exponential reliability model. Assume that the breakdown rate is 1 and the repair rate is 2. Calculate the probability that the machine is up for more than 10 units of time. Calculate the probabil ...

A report claims that for the investment portfolios with a

A report claims that for the investment portfolios with a single stock had a standard deviation of 0.57, while the returns for portfolios with 31 stocks have a standard deviation of 0.325. Explain how the standard deviat ...

Assume that a salesman learned the price elasticity of

Assume that a salesman learned the price elasticity of demand for his products is -2.0. How many percent will increase in the total sales (revenue) if he cuts the price by 10%? Show your calculation process.

Suppose a random variable y has a mean ey 12 and standard

Suppose a random variable Y has a mean E(Y ) = 12 and standard deviation SD(Y ) = 4. Suppose we define a new random variable Z = 3Y + 10. a. Determine the expected value (mean) of Z. b. Determine the standard deviation o ...

The widths of 86 randomly selected doors were found to have

The widths of 86 randomly selected doors were found to have a variance of 1.68. Construct the 90% confidence interval for the population variance of the widths of all doors in this factory. Round your answers to two deci ...

Why are common stock and bond yields important what happens

Why are common stock and bond yields important? What happens if bond interests aren´t paid and what is the difference between common stock and bond investors?

Suppose mpc is 07 government spending increases by 10

Suppose MPC is 0.7. Government spending increases by $10 billion, and taxes decrease by $5 billion. How would the following items change, and by how much? Disposable income Private saving Public( Government) saving Equil ...

In random sampling why is cluster sampling an example of

In random sampling, why is cluster sampling an example of probability sampling?

A 1000 utility bond with 14 years remaining before maturity

A $1000 utility bond with 14 years remaining before maturity can now be purchased for $760. It pays interest of $20 each 6-month period. What rate of return is earned by purchasing the bond at the current market price pl ...

How does the learning environment effect the success of

How does the learning environment effect the success of students? Provide examples.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As