Kaplan BU224 Unit 9 Assignment

BU224.jpg” alt=”KULogo”>Unit 9 Assignment Template:
Name: –
Course Number: –
Section Number: –
Unit Number: – 9
Date: –

———————————- General Instructions for all Assignments———————————–
1.
Unless specified differently by your course instructor, save this assignment
template to your computer with the following file naming format:
Course
number_section number_LAST_FIRST_ unit number

2. At the top of the template, insert the
appropriate information: Your Name, Course Number, Section Number and Date

3.
Insert your answers below, or in the appropriate space provided for in the
question. Your answers should follow the
APA format with citations to your sources and, at the bottom of your last page,
a list of references. Your answers should also be in Standard English with
correct spelling, punctuation, grammar, and style (double spaced, in Times New
Roman, 12-point, black font). Respond to
questions in a thorough manner, providing specific examples of concepts,
topics, definitions, and other elements asked for in the questions.

4. Provide a list of references at the end of
the last page of your assignment.

5.
Upload the completed assignment to the appropriate dropbox.

6.
Any questions about the assignment, or format questions, should be directed to your
course instructor.
——————————————-
Career Competencies —————————————–

In
this assignment, you will engage in developing the following career
competencies:

Analyzing
Quantitative Data
Analyzing
Qualitative Data

——————————————- Assignment ——————————————-

1. Skyscraper City
has a subway system, for which a one-way fare is $1.50. There is pressure on
the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed,
thinking that this will mean Skyscraper City is losing one-third of its revenue
from sales of subway tickets. The mayor’s economic adviser reminds her that she
is focusing only on the price effect and ignoring the quantity effect. Explain
why the mayor’s estimate of a one-third loss of revenue is likely to be an
overestimate.

2.
Bob, Bill, Ben, and Brad Baxter have just made a documentary movie about
their basketball team. They are thinking about making the movie available for
download on the Internet, and they can act as a single-price monopolist if they
choose to. Each time the movie is downloaded, their Internet service provider
charges them a fee of $4. The Baxter brothers are arguing about which price to
charge customers per download. The
accompanying table shows the demand schedule for their film.

Price
of download

Quantity
of downloads demanded

$10

0

8

1

6

3

4

6

2

10

0

15

a.Calculate
the total revenue and the marginal revenue per download.

Price of download

Quantity of downloads demanded

Total Revenue

Marginal Revenue

$10

0

xx

8

1

6

3

4

6

2

10

0

15

b.Bob
is proud of the film and wants as many people as possible to download it. Which price would he choose? How many
downloads would be sold?

c.Bill
wants as much total revenue as possible. Which price would he choose? How many
downloads would be sold?

d.Ben
wants to maximize profit. Which price would he choose? How many downloads would
be sold?

e.Brad
wants to charge the efficient price. Which price would he choose? How many
downloads would be sold?

3.Diagram 1., illustrates your local
electricity company’s natural monopoly. The diagram shows the demand curve for
kilowatt-hours (kWh) of electricity, the company’s marginal revenue (MR)
curve, its marginal cost (MC) curve, and its average total cost (ATC)
curve. The government wants to regulate the monopolist by imposing a price
ceiling.

Diagram 1.
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a.In
diagram 2., the government does not regulate this monopolist. Which price will
it charge, and how much will it produce?
What does the red triangle represent? Why?

Diagram 2. No Regulation

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b.In
diagram 3., the government imposes a price ceiling equal to the marginal cost,
$0.30. Will the monopolist make profits or lose money? Explain the shaded area
of the diagram and what it means for the monopolist. If the government does
impose this price ceiling, do you think the firm will continue to produce in
the long run?

Diagram 3. Price
ceiling $0.30

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c.In
diagram 4., the government imposes a price ceiling of $0.50, will the
monopolist make a profit, lose money, or break even? Explain area of the diagram marked by the red
dashed lines and what it means for the monopolist.

Diagram
4. Price ceiling $0.50
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——————————————–
References:

Unit _9_
Practice Assignment Grading Rubric

Content

Percent Possible

Points Possible

Full assignment

100%

40

Overall Writing:

20%

8

correct coversheet information at the top of 1st page

5%

2

APA format for answers

3%

1

correct citations

3%

1

standard English no errors

4%

2

At least ONE, or more, references

5%

2

Answers: provides complete information demonstrating
analysis and critical thinking:

80%

32

Individual Questions:

1. – Explain the price
effect & quantity effect of Mayor’s estimate.

9%

4

2.a. -Calculate total
revenue and marginal revenue.

9%

4

2. b. – What is Bob’s
price and quantity?

8%

3

2. c. -What is Bill’s
price and quantity?

8%

3

2. d. – What is Ben’s price and quantity?

8%

3

2.e. – What is Brad’s price and quantity?

8%

3

3. a. – If no
regulation, what is output level, explain red triangle?

10%

4

3. b. – What will
monopoly do, if price ceiling $0.30?

10%

4

3. c. – What will
monopoly do, if price ceiling $0.50?

10%

4