A lawyer has two clients. She charges a yearly retainer plus a separate fee for each consultation. The retainer is a fee each client pays just to secure the services of the lawyer for the following year, and the consultation fee is the price the lawyer charges to do one legal job for the client. The clients' annual demand curves for legal jobs are Client 1: Q₁ = 21 - P Client 2: Q₂ = 17-2P where P is the consultation fee in thousands of dollars for one legal job and Q; is the number of legal jobs done for client i. The lawyer's marginal cost for completing one legal job is 3.4 (also in thousands of dollars). The lawyer wants to determine the fee schedule (retainer and consultation fee) that will maximize her profit. She feels she cannot use a different fee schedule for each client, so she must set one retainer and one consultation fee that apply to both clients. She should charge a consultation fee of $ decimal places.) thousand per legal job. (Enter your response rounded to two

Q: Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500…

A: The loan is the amount of money which would result in the amount of money borrowed and used for…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: An account was opened with $1,000 three years ago. Today, the account balance is $1,150.30. If the…

A: Interest is an amount earned on any investment. It can be basically classified as• Simple Interest…

Q: How can we compute the effective interest rate for any duration of time?

A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…

Q: You purchased a winning ticket for a $5 million lottery which pays $500,000 immediately and the rest…

A: Here in this question, To decide whether we have to go with the deal or not. We have to find the…

Q: Write a summary of the fundamental Principles in Engineering Economics?

A: Principle 1: A close by penny is worth a distant dollar A fundamental concept in engineering…

Q: When can we use the Cash-Flow Approach?

A: Cash flow is the net transfer of cash and cash equivalents to and from a business. The ability of a…

Q: A 3-month $28,000 treasury bill with a simple annual discount rate of 0.27% was sold in 2016. Assume…

A: Treasury bill:Duration = 3 monthsFace value = $28,000Simple annual discount rate = 0.27%Year = 2016…

Q: Ryan, a consumer electronics salesperson, eams a base salary of $900 per month and a commission of…

A: The sale is the total the sold out item or product. The sale maximization is the main objective of…

Q: Calculate Savings rate when income is $22000 and the APS is 0.48

A: APS is the average propensity to save. It is the ratio of savings and income.

Q: ncome level and savings level are $7500 and $3200 Find APS

A: The data presented in the question above is:- Income = $7500 Savings = $3200 We need to find the…

Q: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was…

A: here we calculate the interest rate charged which are as follow-

Q: When do Projects require Only Operating and Investing Activities?

A: Projects require operating and investing cash flows to get the estimates about various aspects like…

Q: Patrick is a portfolio manager for the Hyper Tally Growth Fund. It has generated an annualized rate…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: What are the Large-Scale Engineering Economic Decisions?

A: Engineering economic decision refers to all the investment decision related to engineering projects.…

Q: Give three instances when RFID might be preferable over bar codes.

A: Radio Frequency-Identification innovation (RFID): It includes a tag fastened to an item that…

Q: 2.103 Lifetime Savings Accounts, known as LSAS, allow people to invest after-tax money without being…

A: Net Present Value = Initial Investment + present value of all cash flows Here, NPV = -10,000 +…

Q: What are the Fundamental Principles in Engineering Economics?

A: Engineering economics uses economic procedures for the purpose of designing evaluation and other…

Q: How is the equivalent present worth is obtained?

A: The criteria for annual equivalent analysis provide a basis for computing the value of an investment…

Q: Maria takes out a 30-year mortgage at 5.5% to buy a house that costs $280,000. She must have a down…

A: Note: As per the guidelines, we are allowed to only answer up to 3 sub-parts, so we will answer the…

Q: Ans for part D

A: As given utility function is U(B,P) = 2B +P Given utility function is case of perfect Substitute…

Q: How much money is in the account now

A: The formula for calculating the simple interest involves multiplying the principal (P) which is the…

Q: What is the U.S 6 month interest rate?

A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.

Q: Suppose you are considering an investment project that requires $800,000, has a six-year life, and…

A: Initial investment=$800000Salvage value=$100000Fixed cost=$532000 per yearVariable cost=$42 per…