Authors libby rittenberg 493
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at a price of $81. Now, using the marginal cost and average total cost
curves for Acme shown here:
Figure 9.11
Estimate Acme’s profit-maximizing output per day (assume the firm
selects a whole number). What are Acme’s economic profits per day?
Case in Point: Not Out of Business ’Til They
Fall from the Sky
The 66 satellites were poised to start falling from the sky. The hope was
that the pieces would burn to bits on their way down through the
atmosphere, but there was the chance that a building or a person would
take a direct hit.
The satellites were the primary communication devices of Iridium’s
satellite phone system. Begun in 1998 as the first truly global satellite
system for mobile phones—providing communications across deserts, in
the middle of oceans, and at the poles—Iridium expected five million
subscribers to pay $7 a minute to talk on $3,000 handsets. In the climate of
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org
493
