Kalamazoo Competition-free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd = 16,000 – 200P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yard sold per year. Suppose that Kalamazoo’s marginal cost is $20 per cubic yard and its avoidable fixed cost $100,000 per year. What is its profit-maximizing sales quantity and price? How would your answer change if Kalamazoo had an avoidable fixed cost of $200,000 a year? What if that $200,000 fixed cost were instead sunk? [Hint: Recall that when the fixed cost is sunk, the monopolist has to pay $200,000 in cost even if he decides to shut down.]

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?