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Based on market research, a film production company in

Principles of Microeconomics | 7th Edition | ISBN: 9781285165905 | Authors: N Gregory Mankiw ISBN: 9781285165905 94

Solution for problem 10 Chapter 15

Principles of Microeconomics | 7th Edition

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Principles of Microeconomics | 7th Edition | ISBN: 9781285165905 | Authors: N Gregory Mankiw

Principles of Microeconomics | 7th Edition

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15
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Problem 10

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:Demand: P= 1,000 10QTotal Revenue: TR= 1,000Q 10Q2Marginal Revenue: MR= 1,000 20QMarginal Cost: MC= 100 + 10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.a.Find the price and quantity that maximize the companys profit.b.Find the price and quantity that would maximize social welfare.c.Calculate the deadweight loss from monopoly.d.Suppose, in addition to the costs above, the director of the film has to be paid. The company is consider-ing four options:i.a flat fee of 2,000 Ectenian dollars.ii.50 percent of the profits.iii.150 Ectenian dollars per unit sold.iv.50 percent of the revenue.For each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain.

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Why is it important to determine if an employment relationship exsists  Basic Tax; unemployment tax, social security (7.5% employee, employer matches) o This is a big issue because of the cost  Many of the federal laws that have been established, they don’t apply to independent contrators o Things like wage an hour and discrimination don’t apply. They only apply to statutory employees  If any other benefits are offered to employees, like health care, it doesn’t apply to independent contractors Contingent workers: people that work for a limited time. Brought on to do a job for like a month and then they are let go. Whether someone is an employee or an i

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Chapter 15, Problem 10 is Solved
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Textbook: Principles of Microeconomics
Edition: 7
Author: N Gregory Mankiw
ISBN: 9781285165905

The answer to “Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:Demand: P= 1,000 10QTotal Revenue: TR= 1,000Q 10Q2Marginal Revenue: MR= 1,000 20QMarginal Cost: MC= 100 + 10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.a.Find the price and quantity that maximize the companys profit.b.Find the price and quantity that would maximize social welfare.c.Calculate the deadweight loss from monopoly.d.Suppose, in addition to the costs above, the director of the film has to be paid. The company is consider-ing four options:i.a flat fee of 2,000 Ectenian dollars.ii.50 percent of the profits.iii.150 Ectenian dollars per unit sold.iv.50 percent of the revenue.For each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain.” is broken down into a number of easy to follow steps, and 141 words. The full step-by-step solution to problem: 10 from chapter: 15 was answered by , our top Business solution expert on 09/09/17, 04:24AM. This textbook survival guide was created for the textbook: Principles of Microeconomics, edition: 7. Principles of Microeconomics was written by and is associated to the ISBN: 9781285165905. This full solution covers the following key subjects: . This expansive textbook survival guide covers 22 chapters, and 222 solutions. Since the solution to 10 from 15 chapter was answered, more than 585 students have viewed the full step-by-step answer.

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Based on market research, a film production company in