Determine your companys quasi-rent


Assume you manufacture 10 million hard drives per year specifically for the Dell laptop computers. Assume your average variable cost C=$20/unit, the annualized cost of investment to build a hard drive factory I=$30 million, and market price Pm=$22/unit. If Dell agrees to purchase the 10 million hard drives at a price P*=$25/unit and deal subsequently falls apart, determine your company's "quasi-rent"?

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Macroeconomics: Determine your companys quasi-rent
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