Denver post newsstand price 2018

Final Economics Assignment

America’s oldest department store, founded in 1826, heralded its “fierce

commitment” to preserving its brand in an ad in the Washington Post. But the

storied retailer was down to its last $2.8 million

After World War II, Lord & Taylor branched out into the suburbs, introduced the idea of personal shoppers and launched its distinctive logo. For all its glamorous history, the 194-year-old chain closed most of its 38 stores. Department-store chain Lord & Taylor kicked off its bankruptcy proceeding Monday with a full-page newspaper ad announcing its search for a new owner, but it has little time or money to reach a deal.

Retailers that sell non-essential goods such as clothing have been crushed by the COVID-19 pandemic. San Francisco-based Gap, which operates nearly 2,800 stores in North America, said its company-operated stores in the region are open

1. Use the concepts of fixed and variable costs to explain why Lord & Taylor would close but Gap which is also operating at a loss is staying open. ( 10 points)

2. The Boston Herald's newsstand sales, which make up roughly half of the tabloid's print circulation, are down 41% year-over-year in the past few months as much of the city remains empty due to the Covid-10 pandemic, according to the newspaper's own filing this week.

The Herald, owned by Denver-based MediaNews Group since March 2018, said in a filing with the Alliance for Audited Media that its total weekday print circulation over the six months from April to September this year averaged 24,540 per day. That's down from 34,219 in the same six month span in 2019 — a 28% drop in a single year.

A 2017 study by Pew Research found that average annual decline in weekday print circulation among newspapers nationwide is about 10%.

In the Herald's case, the likely culprit is a sharp drop in so-called single-copy sales —\

2 Fill in the chart and Graph on the Answer sheet . If you can’t draw a graph you can copy and paste the correct graph from class notes session three

Question 3.

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3. See the graph above, Label and Describe in terms of :
A. Name of Market Structure (3 points)

b. Ability to control prices. (3 points)

c. Spending on advertising and marketing (3 points)

d. Pure profit, Normal profit or losses. (3 points)

4. The reason some firms are able to make pure profits is because of barriers to entry. List and define 2 barriers to entry. (5 points each)
a.

b.

5. Graph above questions below.

A. Name of Market Structure (3 points)

B. Ability to control prices. (3 points)

C . Spending on advertising and marketing (3 points) D .Pure profit, Normal profit or losses. (3 points)

6. Complete the following short-run cost table using the information provided. ( 15 points)

Total product

TFC

AFC

TVC

AVC

TC

MC

0

$

—

$

—

$

$

1

$

$12

2

11

10

3

12

4

14

7.

A. The shutdown point is at P? ( 4 points)

C. The break- even point is at Q? ( 4 points)

8. Explain why Amtrak is considered a natural monopoly.

. (4 pts)

9. Why is the demand curve for oligopolies kinked? (8 points)
10. Al quit his job as a manager at North End Savings bank where he earned $105,000 a year. He cashed in $250,000 in corporate bonds that earned 2% interest annually to set up a gym. Al has decided to buy a store front and set up exercise classes. There are 1000 people who will pay $1100 a year for unlimited classes; $750 from each person goes for instructors, maintenance, equipment, insurance, depreciation etc.

Write your answers to the following questions on the answer sheet. You must show your work.
A. What are Al’s total revenues? (3 pts)

B. What are Al’s explicit costs? In numbers (3 pts)
C. What is his accounting profit? Numbers (3 pts)

D. List 2 in numbers 2 implicit costs that Jon has not included. (3 pts)
E. What is Al ’s pure economic profit (or loss) in numbers? (3 pts

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