Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

of potential customers of equal number-10 businesses and 10 academic institutions. Each business customer has the demand function: Q=10P where Q is in millions of

image text in transcribedimage text in transcribed

of potential customers of equal number-10 businesses and 10 academic institutions. Each business customer has the demand function: Q=10P where Q is in millions of seconds per month; each academic institution has the demand: Q=8P. The marginal cost to SC of additional computing is 2 cents per second, regardless of volume. For business users, the rental fee would be $ per month and the usage fee is cents per second. For academic institutions, the rental fee would be $ per month and the usage fee is cents per second. SC's total profits are: ] per month. b. Suppose you were unable to keep the two types of customers separate and charged a zero rental fee. What usage fee would maximize your profits? What would be your profits? The profit maximizing usage fee is cents per second. (round your answer to two decimal places) SC's profits are $ per month. (round your answer to the nearest dollar) The profit maximizing rental fee is $ per month (round your answer to the nearest dollar) and the usage fee is cents per second. (round your answer to one decimal place) SC's profits are $ per month. (round your answer to the nearest dollar) of potential customers of equal number-10 businesses and 10 academic institutions. Each business customer has the demand function: Q=10P where Q is in millions of seconds per month; each academic institution has the demand: Q=8P. The marginal cost to SC of additional computing is 2 cents per second, regardless of volume. For business users, the rental fee would be $ per month and the usage fee is cents per second. For academic institutions, the rental fee would be $ per month and the usage fee is cents per second. SC's total profits are: ] per month. b. Suppose you were unable to keep the two types of customers separate and charged a zero rental fee. What usage fee would maximize your profits? What would be your profits? The profit maximizing usage fee is cents per second. (round your answer to two decimal places) SC's profits are $ per month. (round your answer to the nearest dollar) The profit maximizing rental fee is $ per month (round your answer to the nearest dollar) and the usage fee is cents per second. (round your answer to one decimal place) SC's profits are $ per month. (round your answer to the nearest dollar)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Investments Fixed Income Securities And Interest Rate Derivatives Volume 2

Authors: R. Venkata Subramani

1st Edition

047082591X, 978-0470825914

More Books

Students also viewed these Accounting questions