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.
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
