1. Why can't a monopolist charge any price he wishes for his product? 2. The Government grants a single firm the right to sell food and drink in Yosemite National Park. What are thge tradeoffs associated with such a poicy? 3. Give two examples of natural monopolies. Should the government set price ceilings in natural monopoly markets? Why? 4. Monopolistic competition has some of the same characteristics as monopoly and some of the same characteristics as perfect competiton (hence the name "monopolistic competition"). List a few of these similarities. 5. Why do monopolistically competitive firms end up making zero economic profits? 6. Why does a monopolistically competitive firm choose the level of output where marginal cost equals marginal revenue? 7. Complete this statement by filling in the blanks with the words "increase" or "decrease": The entry of an additional firm in a mon. comp. market _____________ the profit per unit of output because entry _________ the price and _____________the average cost of production. 8. Consider the Utica Slappers, a hockey team that plays in an arena with 8,000 seats. The only cost associated with staging a hockey game is a fixed cost of $6,000: The team incurs this cost regardless of how many people attend a game. The demand curve for hockey tickets has a slope of $0.001 per ticket ($1 divided by 1,000 tickets): Each $1 increase in price decreases the number of tickets sold by 1,000. For example, here are some combinations of price and quantity: Price per ticket $4 $5 $6 $7......Quantity of tickets 8,000 7,000 6,000 5,000. The owner's objective is to maximize the profit per hockey game (total revenue minus the $6,000 fixed cost). a. What price will maximize profit? b. If the owner picks the price that maximizes profit, how many seats in the arena will be empty? c. Is it rational to leave some seats empty? 9. There are a wide variety of breakfast cereals on the marketin grocery stores, they usually take up an entire aisle. As a result, it is possible to purchase many cereals that are highly similar but have small distinguishing characteristics that differentiate them. a. List some cereals that are very close substitutes for one another b. What does society gain from having all of these varieties of breakfast cereal? c. What does society lose by having all of these varieties of breakfast cereal? 10. Briefly differentiate between collusion among firms in an oligopoly and an actual cartel. 11. Give a real world example of a duopoly and a cartel.

A company sells medical supplies to hospitals and healthcare facilities that are mostly located in the Michiana region. The company has 150 employees, and it is about to decide whether part of them should be encouraged to work remotely, and if so, how many employees should do that. There are many aspects to be analyzed such as productivity and collaboration, but you will focus on the costs of space and IT at the company’s main office versus the costs of working remotely.

The costs of office space include building rent and maintenance, utilities, cleaning, and insurance. The company estimates that those costs could be either one of three scenarios: (A) $60,000 per month for a building where all employees can be accommodated; (B) $50,000 per month for a building that can accommodate 100 employees; or (C) $40,000 per month for a building for 50 employees.

The main costs of IT include the lease, operation and maintenance of equipment (a desktop computer for each employee, and the office’s Wi-Fi access points, cabling, routers for the LAN/MAN) and a contract with a fixed Internet service provider. The equipment cost is $7,500 per month for scenario (A), $5,500 for (B) or $3,500 for (C). The cost with the fixed Internet service provider is (A) $5,000 per month for all employees; (B) $4,000 per month for 100 employees; or (C) $2,500 per month for 50 employees.

If some of the employees no longer work frequently at the central office, then the company can operate on a smaller office (i.e. B or C instead of A). On the other hand, the company will provide a laptop, smartphone and a cellular plan for each employee working remotely. The company already has a corporate cellular contract with Cerizon for some employees. If some employees are to work remotely, then the company will add them to the same contract. The contract includes the smartphones at no extra cost, and Cerizon charges $10 per GB for employees who use less than 5GB per month, $8 per GB for employees who use 5GB or more but less than 10GB per month, and $6 per GB for employees who use 10GB or more per month. The cost of each laptop is $1,000, which the company considers that depreciates linearly over its lifetime of 2 years.

Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.60 per check; the amount per check averages $90. “Bad” checks that Rosita cannot collect make up 2 percent of check revenue.

During a typical month, Rosita's has sales of $46,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

In Assignment 2 you considered the following setting: Near-sightedness (myopia) afflicts roughly 10% of children at age 5.

Assume that the school has a total of 600 students.

Part A. In this school, what is the expected number of students to have myopia? What is the variance?

Part B. If we assume that the students in the school form an independent and random sample, then approximate the probability that at most 60 of the students in the 600 student school have myopia.

When calculating the approximate probability, please be sure to justify the approximation (i.e. check any conditions) and show all your work in the calculation.

Part C. If we assume that the students in the school form an independent and random sample, then what is the approximate probability that at least 55 and less than 65 of the students in the 600 student school have myopia? Again, show all necessary work in this calculation.

Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.50 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 3 percent of check revenue.

During a typical month, Rosita's has sales of $45,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

A total of 8 neutrinos, presumably from Supernova 1987A, as observed in an underground detector located in a salt mine near Cleveland.

(a) If the average number of "background" neutrinos observed per day is know to be 2, calculate the probability that 8 or more such background events will be detected in one day.

(b) If the average number of "background" neutrinos observed per day is know to be 2, calculate the probability that 8 or more such background events will be detected in a 10-minute period.

(c) Based on your answers to parts (a) and (b): Should the experimenters (call them Team A) who observe 8 or more events distributed over a one-day period publish their results as a "discovery," or simply attribute these "events" to a fluctuation in the background rate? If Team B observes 8 or more events within a 10-minute period, is this an important discovery, or likely statistical fluctuation?

Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.60 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue.

During a typical month, Rosita's has sales of $49,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

Schedule of Cash Receipts

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.60 per check; the amount per check averages $75. “Bad” checks that Rosita cannot collect make up 4 percent of check revenue.

During a typical month, Rosita's has sales of $49,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows:

Required:

Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar.

In February 2013, a 10,000 ton meteor entered the atmosphere near the city of Chelyabinsk, Russia. Analysis of the trajectory showed that the meteor was traveling at a speed of 17.5 km/s at an angle of 17.7o below horizontal, when it was at a height of 77.9 km. Fortunately the meteor exploded high in the atmosphere, where most of its energy was dissipated.

(a) Had the meteor not exploded, and ignoring air resistance, how long would it have taken for the meteor to hit the ground from its 77.9-km height?

(b) With the same assumptions as in part (a), how far in horizontal distance would the meteor have traveled from its initial location to when it hit the ground?

(c) Just before striking the ground, what would have been the meteor’s total velocity? (You may give your answer in either speed-angle or x,y component form.)