Answer:
The two optimal two part price that would be suggested to Verizon is Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Explanation:
Solution
For us fully maximize profit under two part price It should gives that amount of wireless service at which P = MC and and also charge Lump sum fee or fixed fee equals to the consumers surplus that consumer will have.
Now,
marginal cost= MC = 1 and P = 100 - 25Q.
Thus,
P = MC => 100 - 25Q = 1 => Q = 2
Then,
The Consumer surplus is the above area Price of line which is (iP = 1) and below is the curve of demand
Now,
P = 100, When Q = 0 The Consumer surplus = (1/2)*base*height
= (1/2)*(100 - 1)*2 = 99
Therefore, Fixed fee or The Lump Sum fee = 99
However, the Optimal two part pricing is denoted by:
The Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Answer:
a) The book value of the bond immediately after the 4th coupon:
It is the ending of the period book value from the for the fourth period above schedule = $93.72.
b) Accumulation of the discount in the 6th coupon:
It is the sum of principal portion for period 1 to 6 = 0.28 + 0.29 + 0.29 +0.30 + 0.31 + 0.32 = $1.79
c) Interest portion of the 8th coupon:
It is the interest portion for the 8th period = $2.84.
Explanation:
DEtailed solution is attached below:
Answer:
sort in descending order
Explanation:
Descending order means arranging from the largest to the smallest. It can also imply organizing from the oldest to the youngest. When numbers are sorted out using the descending order, the largest numbers will appear and the top, while the smallest will be at the bottom. April should sort using the descending order.
