9781118041581

Answers to Odd-Numbered Problems 7 b. Delta’s management will tout city-by-city on-time comparisons. In New York, its frequency ...

impacts on the availability of can scrap. Finally, technology might matter; new can-making processes might reduce the amount of ...

Answers to Odd-Numbered Problems 9 of labor increases, this changes the slope of the isocost line (so that labor “trades” for mo ...

a. The profit associated with an electronic control device (ECD) is E 1,500 [500 (2)(300)] $400. If the firm sells the two ...

Answers to Odd-Numbered Problems 11 a. We are given that MC $20,000, and from the price equation, we derive MR 30,000  .2Q. ...

b. If demand for Picasso’s work is inelastic, increasing the number of pieces sold (by driving down prices) will reducetotal rev ...

Answers to Odd-Numbered Problems 13 Setting QDQSimplies 1,000 20P 15P. Thus, we find P $28.57 and Q 428.57. At QF42.86, ea ...

a. OPEC maximizes its profit by setting MR MC. We have 115 4Q  15. Therefore, Q 25 million barrels per day. In turn, P $65 ...

Answers to Odd-Numbered Problems 15 P $7 and QS15. The firm offers a price that is less than its value ($10), but high enough ...

agree to withhold excess supplies from the market in order to maintain higher prices. b. If each member’s compensation is based ...

Answers to Odd-Numbered Problems 17 a. There are two equilibria: firm J develops E and firm K develops D, and vice versa. Thus, ...

b. With multiple rounds, the buyer could vary its purchases to encourage lower prices (for instance, by purchasing 6 units at P ...

Answers to Odd-Numbered Problems 19 optimal result in part (b). The competitive market price, including tax, becomes: 60  10 $ ...

consumer surplus is (.5)($3 $1.50)(450) $337.50 per hour. At a rate of $1.00, 600 cars will park each hour, generating revenue ...

Answers to Odd-Numbered Problems 21 an “open strategy” is (.25)(1.5) (.25)(1.1) (.25)(.8) (.25)(.6)  $1.0 million. Thus, the ...

would be for the “lax” program, making it the winner at an expected cost of $.19 billion. a. If the customer response is weak, ...

Answers to Odd-Numbered Problems 23 development. Since sequential development has the greater risk (i.e., dispersion of possible ...

24 Answers to Odd-Numbered Problems 100 90 .6 .5 .5 $ 50 75 Success 75 .4 Failure No No Redesign $125 $ 25 .5 .5 75 $125 $ 25 $1 ...

Answers to Odd-Numbered Problems 25 b. According to Bayes’ Theorem, a. Opening directly on Broadway implies an expected profit ...

c. According to the joint table, Pr(S|C) .5/.8 .625 and Pr(S|H)  0/.2 0. Risky Outcomes Prototype Success Failure Total Cool ...