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If the demand curve for Pfizer's Norvasc, a blood pressure medication, is more elastic in Mexico than it is in the United States, how could Pfizer use this information to maximize their profits? They could segment the markets and charge a lower price for Norvasc in Mexico than in the United States. They could segment the markets and charge a higher price for Norvasc in Mexico than in the United States. Since Mexico is a poorer country than the United States, in this situation it makes more sense for Pfizer to charge only one price in both countries. They could choose to sell Norvasc only in the United States.
Assume that the quarterly demand and supply functions for German made Bosch washer machines: Qd = 340 – 6P Qs = 100 + 2P. Where price is $125 dollars, what are the quantities demanded and supplied? Assume that Bosch wants to focus solely on price and..
Suppose in Belgium the opportunity cost of producing a trombone is 8 clarinets. In Denmark the opportunity cost of producing a trombone is 6 clarinets. Which country has a comparative advantage in the production of trombones?
The tax on cigarettes in New York City is the highest in the nation- $5.85 per pack. Does this tax raise a lot of revenue for New York City? Why or why not? What are some of the secondary effect of this tax?
we want to take a random sample of four accounts in order to learn about the population. How many different random samples of four accounts are possible?
What is the difference between second-degree price discrimination and third-degree price discrimination?
q.suppose you are the manager of a home-building company and the government is considering eliminating the
A consumer has preferences between two goods, hamburgers (measured by H) and milkshakes (measured by M). His preferences over the two goods are represented by the utility function U = √H + √M. For this utility function MUH = 1/(2√H) and MUM = 1/(2√M)..
To what extent do politicians and politics affect or manipulate markets? Is it a major or minor factor? If it were a major factor, what would happen if such manipulation didn’t take place? If it were a minor factor, do you believe there is a major fa..
Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural s..
Given that it takes 5 yards of textile to make a suit whose free trade price is $150.00 and that the textile sells for $20.00 per yard. Calculate (i) the NRP and the ERP if the government is to impose a $30.00 tariff per suit and (ii) what happens to..
Supposre that there are equal numbers of each customer type, and that the MC of the iphone is $100."
How much must be deposited each month for 9 months at an interest rate of 9.6% per month to allow for a single withdrawal of $54,273.31 at the same time as the last deposit?
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