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Price Discrimination (PD) occurs "when a firm charges different prices to different customers for the same good". Explain under what conditions PD is possible and profitable? How Price Discrimination impacts the consumer welfare? {Use neat and clean diagram to explain your answer}.
Two company face a demand equation given by: P=200,000-6(q1+q2) where q1 and q2 are the outputs of the two firms. The total cost equations for the two company's are given by:
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
a firm uses two inputs capital k and labor l in its production process. capital and labor are perfect complements in
On the basis of historical data, Richard Tennant has concluded, "The consumption of cigarettes is [relatively] insensitive to changes in price. In contrast, the demand for individual brands is highly elastic in its response to p..
if the fed wants to keep real gdp at its potential level in 2015 should it use expansionary policy or contractionary
Evergreen Landscapers, Inc., owes Friendly Finance Company $5,000. Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.
Compare a collusive oligopoly market structure with perfect competition in terms of price, output, allocative efficiency and consumer and producer surplus. Support your analysis with economic theory and graphs.
Compute the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.
How would the aggregate supply curve be affected if the government mandated that all companies of over 50 employees must provide an increased level of health care benefits?
Pine Village needs some additional recreation fields. Construction will cost $225,000 and annual O&M expenses are $85,000. The city council estimates that the value of added youth leagues is about $190,000.
Describe the total cash flows in real terms and the depreciation tax shield. What is it that has you concerned.
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
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