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Fred Smith, the inventor of FedEx, came up with a new product called Zap Mail in the mid 1980's. Zap mail, although a monopoly, was not successful. The company lost about $390 million on Zap Mail before the product was eventually discontinued. -- Draw appropriate curves to illustrate the situation of this monopoly while it was in operation. Clearly label all curves and axes.
Suppose a domestically produced motor bicycle sells at a world price of $5,000 under unrestricted trade. The domestic producer uses $3,000 worth of imported inputs, (VA*). What is the domestic price of the imported motor bicycle? What is the possible..
Review Netflix most recent balance sheet, income statement, statement of stockholders' equity and statement of cash flows. Pay particular attention to sales and net income for the last two years. Comment on 2-3 items that you find remarkable on any o..
Identify a few ads for brands that have been endorsed by United States celebrities. Try to use examples your classmates haven't already posted (i.e., review the papers posted before yours). What is the effect of the celebrity’s attractiveness, likeab..
What is predatory pricing? What federal acts make it illegal? How are consumers hurt by predatory pricing you must go into great detail? Give two potential product examples of predatory pricing. Also describe a situation a marketer might face that mi..
Again, thinking in terms of marginal propensity to consume, under what circumstances would your tax proposal increase total consumption spending? What other policies could be enacted to increase total consumption spending?
Explain the relationship between consumer demand and producer supply. The law of demand states that as prices increase the quantity demanded decreases. The law of supply states that as prices increase the quantity supplied increase. Explain how chang..
A product sells at the rate of 5 per day and the company operates seven days per week. The order quantity is 100. It takes 7 days for an order to be delivered. Carrying cost is $2.00 per unit per year. What is the maximum inventory assuming zero safe..
What market structure is used to benchmark allocative efficiency and why do we use it?Illustrate and explain using a diagram.Why and how do monopolistically competitive firms fail to achieve allocative efficiency? Illustrate and explain using a diagr..
Illustrate what was the value of the government expenditure multiplier. What was the value of the tax multiplier.
In developing a vaccine for the SARS virus a pharmaceutical company incurs a very high fixed cost. The marginal cost of delivering the vaccine to patients, however, is negligible (consider it to be equal to zero).
A perfectly competitive firm operates in the short-run with labor as its only variable factor. Its production function is: Q = -L3 + 10L2 + 88L where Q is output per week measured in tons and L is the number of workers employed. The weekly wage is $3..
Truckco manufactures two types of trucks; the T1 and the T2. Each truck must go through the painting shop and the assembly shop. If the painting shop were completely devoted to the T1, 800 trucks could be painted in a day. The T1 contributes $300 in ..
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