Firm T produces 600 tires at a cost of $30 each, and sells all 600 tires to Firm B at a cost of $35 each. Firm F produces 300 bicycle frames at a cost of $200 each, and sells all 300 frames to Firm B for $225 each. Firm B produces 300 bicycles at a cost of $500 each. Firm B sells 280 bicycles to consumers for $600 each. They do not sell the remaining bicycles. In each blank, enter a whole number with no commas and no dollar sign. In this simple economy the value of consumption spending is $   and the value of investment spending is $

The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants Marketing/Sales Accountants Price per each Profit on just that software PowerPoint Total profit on all software $76 $200 $25 A la carte pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? PowerPoint Excel $100 $100 $250 $ Word $200 $125 $25 Excel Word Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle and what would profits be? Bundled Price $ Total Profit S Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme?$ Is this mixed-pricing scheme…

CareRight Medical Company has invented and received a patent for a new drug to treat a rare and fatal disease. It charges $5,000 for a year’s supply of the drug. Critics claim that this amount is excessive, as it does not cost that much to produce. They believe the company is taking advantage of sick people. CareRight responds that they are losing money on this drug. The critics are right: It does not cost CareRight $5,000 to produce a year’s supply for one person. However, CareRight’s statement is also correct in that they are losing money on the drug. How can both statements be true? Consider the different types of costs in your answer.

Assume that firm A is offered a supply of essential components by an outside supplier for a price less than the full cost of firm A making them. Explain why firm A might reject this offer.