In 2008–2009, the price of jet and diesel fuel used by air freight companies decreased dramatically. As the CEO of FedEx, you have been presented with the following proposals to deal with the situation: a. Reduce shipping rates to reflect the expense reduction. b. Increase the number of deliveries per day in some markets. c. Make long-term contracts to buy jet fuel and diesel at a fixed price for the next two years and set shipping rates to a level that will cover these costs. Evaluate these alternatives in the context of the decision-making model presented in the text.

Real World Medical Technology is putting together its R&D budget for the coming year. The firm has compiled a list of potential research and development projects and estimated the interest rate and amount of financial capital required for various levels of R&D spending. The data collected is shown in the table below. Graph the demand curve for Real World Medical Technology that includes the spillover benefits society enjoys from the company's investment in R&D. Interest Dprivate (in Dsocial (in Point Rate millions) millions) A 11% $2 $3 В 9% $3 $4 C 7% $5 $7 D 5% $6 $12 E 3% $9 $16 Provide your answer below: -5- C E (0 2) (4, 2) |(8, 2) (12, 2) [16, 2) 5 10 15 20 Financial capital (in millions $) Rate of return (%)

At these levels of output the marginal revenue in the manufactured items market is     and the marginal revenue in the semimanufactured raw materials market is    .   At these prices, the price elasticity of demand in the manufactured items market is    and the the price elasticity of demand in the semimanufactured raw materials market is    . (Hint: ED=PMR−P��=�MR−�)   What are the total profits if the company is effectively able to charge different prices in the two markets?    .   If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are    per ton  and    tons  respectively. The total profits in this situation is    .

Most of Australia’s coal-fired power plants are running at a loss as electricity prices continue to slide, battering the profits of energy giants AGL and Origin and sparking warnings from within the industry of earlier-than-expected plant closures. An influx of renewable energy has been driving down daytime electricity prices and piling enormous pressure on the nation’s fleet of coal-fired power stations, which are far more expensive to operate and, increasingly, struggling to compete. New figures reveal baseload electricity prices in Victoria crashed 70 per cent from about $80 a megawatt hour in March 2020 to $24 this month… Price falls across the nation’s main grid have been driven largely by the pandemic-led downturn in energy demand, a cooler-than-usual summer and the accelerating rollout of rooftop solar panels. While demand is recovering, the flood of cheap renewable energy continues. With four gigawatts of new wind and solar already committed to enter the grid between 2021-23…

Question 6. PDO company specializes in rapid parcel delivery. Cross sectional data from PDQ's regional "hubs" were used to estimate the demand equation for the company's services. Holding income and prices of other goods constant, the demand equation is estimated to be P 66Q 1A where p is the price per pound and Q is pounds delivered. The marginal cost of delivery is constant and equal to Le 2 per pound. a. What is the point price elasticity of demand? b. What are the profit maximizing price and quantity? c. What are the total revenue maximizing price and quantity? d. For each of the the given equations F(y,x) =0 is an implicit function y f(x) defined around the point (y 3, x 1 (i) X³-2x'y +3xy?-2ii 2x2 +4xy -y+ 67 0 If the answer is on the affirmative find by the implicit function rule and evaluate at the said pt. dx

A book company has made the following table for its needs, Price and Subscription. A book company has made the following table for its needs, Price and Subscription. If cost of the subscriptions were reduced by 30%. What might happen to its demand and supply. What might happen to its demand and supply if its competitors reduced their prices by 20%.