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STALIN [3.7K]
3 years ago
10

Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose

that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 33Q and the marginal cost of providing wireless services to the area is $1 per minute. Compute consumer surplus when Verizon Wireless charges an optimal two-part price.
Business
1 answer:
Feliz [49]3 years ago
3 0

Answer:

If Verizon charges an optimal two-part price thenconsumer surplus will be zero.

Explanation:

Given a competitive market the consumer surplus will be the area of the demand curve above the market price

This is, between the intersection point with Y axis and a parallel at market price. Ofter represent as a triangle

If a monopolistic company maximize profit It will decrease this consumer surplus as much as it can to gain it from itself.

First it will set price equal to his marginal revenue.

Then, if possible it will charge two tariff a fixed component and a variable component per usage This will extrac all consumer surplus in favor of the firm leaving a consumer surplus of zero.

If Verizon charges an optimal two-part price thenconsumer surplus will be zero.

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When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line.
MatroZZZ [7]

People often produce goods. When production is characterized by opportunity costs, the resulting production possibilities frontier will be a straight line is a true statement.

<h3>What is opportunity cost in terms of production?</h3>

The opportunity cost of transporting or changing from one efficient combination of production to another that is better is simply defined as how much a specific good that is one goods is given up so that a person can get more of another kind of goods.

Opportunity cost is said to be seen when spending more money on an item.

Due to the above, when production is seen to be more of constant opportunity cost, the resulting production possibilities frontier is known to occur on a straight line.

Learn more about Production from

brainly.com/question/1501489

7 0
2 years ago
Economic integration is a process of eliminating restrictions on international trade, payments, and factor mobility. Economic in
valina [46]

Answer:

True

Explanation:

Economic integration refers to an agreement between countries to eliminate trade barriers and coordinate their monetary policies. The integration allows to reduce trade costs, more employment opportunities as there is mobility and market expansion. Usually, this is considered a regional trading arrangement as it tends to be between neighboring countries. An example of a economic integration is the European Union. According to  this, the statement is true.

4 0
3 years ago
A buyer has decided to offer $335,000 for a home that she really likes. The bank will loan her 80% of the purchase price for 30
RUDIKE [14]

Answer:

We have:

Amount of principal = $268,000

Interest payment = $1,522.24

Explanation:

These can be calculated as follows:

Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000

Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24

Therefore, we have:

Amount of principal = $268,000

Interest payment = $1,522.24

5 0
3 years ago
.3Simba and Zola are married but file separate returns. Simba received $80,000 of salary and $1,200 of taxable dividends on stoc
Sidana [21]

Answer:

Zola's gross income is worked out under community property state;

Explanation:

community property state

Dividends ($1200/2)                               $600

Interest on certificate of deposit  ($900/2)     $450

Salary               ($80,000/2)                          $40,000

Gross income                                         $41,050

Under community law system, all the property is deemed to be community property and is held jointly by the spouses unless the property is acquired before marriage or inheritance or gift.

For federal tax purposes, each spouse is taxed one and half of the property belonging to community. Therefore Zola is taxed 50% for the incomes of her spouse as well including the interest on certificate of deposit.

6 0
3 years ago
The use of capital in the production process ______.
Ray Of Light [21]

Answer:

The correct answer is letter "D": improves efficiency, increases output, and provides for growth.

Explanation:

In general, capital refers to financial resources. Capital includes financial assets used in manufacturing, as well as the machinery and equipment businesses. Investors purchase stocks or mutual funds using capital. Companies raise capital from a bond or stock sales to fund their operations. Although capital may be cash or currency, it is not the same as money.

<em>While talking about production, capital allows firms to hire qualified personnel that improves the company's efficiency which is likely to increase production or improve the quality of the output. Eventually, both an increase in efficiency and output contributes to the growth of an institution in the form of more profits.</em>

7 0
3 years ago
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