Authors libby rittenberg 495

Why did Colussy buy Iridium? A top executive in the new firm said that
Colussy just found the elimination of the satellites a terrible waste.
Perhaps he had some niche uses in mind, as even before September 11,
2001, he had begun to enroll some new customers, such as the Colombian
national police, who no doubt found the system useful in the fighting drug
lords. But it was in the aftermath of 9/11 that its subscriber list really
began to grow and its re-opening was deemed a stroke of genius. Today
Iridium’s customers include ships at sea (which account for about half of
its business), airlines, military uses, and a variety of commercial and
humanitarian applications.
Sources: Kevin Maney, “Remember Those ‘Iridium’s Going to Fail’ Jokes?
Prepare to Eat Your Hat,” USA Today, April 9, 2003: p. 3B. Michael Mecham,
“Handheld Comeback: A Resurrected Iridium Counts Aviation,
Antiterrorism Among Its Growth Fields,” Aviation Week and Space
Technology, 161: 9 (September 6, 2004): p. 58. Iridium’s webpage can be
found at Iridium.com.

ANSWER TO TRY IT! PROBLEM
At a price of $81, Acme’s marginal revenue curve is a horizontal line at
$81. The firm produces the output at which marginal cost equals
marginal revenue; the curves intersect at a quantity of 9 jackets per
day. Acme’s average total cost at this level of output equals $67, for
an economic profit per jacket of $14. Acme’s economic profit per day
equals about $126.

Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org

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