Jane Worth comes from a very wealthy family. Jane's family has set up a trust fund for her with the following incentive system: Each year, Jane is given an allowance from her family's trust fund under the following conditions: (i) If Jane earns less than $40,000 in that year, she gets no money from her trust fund. (ii) If Jane earns at least $40,000 in given year but less than $60,000, she collects $1 from her trust fund for every $1 that she earns above $40,000. (For example, if she earns $41,000 in the labor market, her trust fund pays her $1,000. If she earns $60,000 in the labor market, her trust fund pays her $20,000.) For every dollar that she earns above $60,000, the $20,000 award from her trust fund is reduced by 10 cents ($0.10), until she is back to getting no money from her trust fund. Draw Jane's budget constraint under her family's incentive system. It may help to also draw in the budget constraint that Jane would face if she had no fund from her family. Label the relevant points along the budget constraint. (You have to do simple algebra to find the points)

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

Sanibel autos inc. merged with its competitor vroom autos inc. this allowed sanibel autos to use its technological competencies along with vroom autos' marketing capabilities to capture a larger market share than what the two entities individually held. what type of integration does this scenario best illustrate? a. vertical b. technological c. horizontal d. perfect

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?