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A local surf store estimates that their average customer's demand per year is P = 3.5 - 0.5Q, and knows that the marginal cost of each rental is $0.5.
a- How much should the store charge for an annual membership in order to extract all the consumer surplus using an optimal two-part pricing strategy?
b- How much should the store charge for each rental if it uses an optimal two-part pricing strategy?
Elucidate the pressures that increasing German interest rates put on the other European Union (EU) countries' currencies.
Fiscal policy refers to the use of government expenditures or tax policy to influence the aggregate demand for a specific purpose.
Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
Explain how can we calculate the elasticities of demand from a demand function, and elasticities of supply from a supply function.
If Deltas managers needs to follow a constant payout ratio dividend policy
What happens to the demand for pizza if the price of that product decreases? What happens to the supply of tomatoes if the wages of tomato pickers increase?
Compute and contrast the way Keynes and Friedman approach the economy. What are the key differences and similarities.
Pam, having recently graduated from college, is looking to work for 2 years before she enters graduate school. She has received 2 job offers with the following salary structures:
How would each of the following affect the firm's marginal, average, and average variable cost curves?
The opportunity price of an investment is the real rate of interest, and that's why investment demand depends on the the real interest rate.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Describe implications for pricing of batteries, brakes and oil changes on the sale of tires.
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