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A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer -there are 30 of them- has a demand curve given by Q = 20 - P, while each type II customer -there are 50 of them- has a demand curve given by Q = 15 - P. The firm's marginal cost is constant and equal to $5. Suppose the firm wants to use a two-part pricing strategy (T; P), and it has decided to set P = $5 (we know this need not be optimal, but this is what the firm has decided to set). With P= $5, the profit-maximizing T is
During the real estate boom of the mid-1990s, the price of new and existing homes rose year after year, yet people purchased more homes year after year. Is this outcome best explained as an exception to the law of demand, or is a different explanatio..
Suppose that the government imposed a $1 tax each time someone used an ATM.
What were the main causes of the real estate bubble and the ensuing financial crisis? Why did the crisis spread from subprime mortgages to the entire financial sector and, ultimately, the economy? How has the crisis been reflected in the United State..
Identify a product or service produced by Wal-Mart. Describe the inputs used to produce this product or service as well as the types of costs involved in its production. Consider the following questions: What factors may affect the mix of inputs used..
q.what are the informing factors of global interdependence including the economic factors political dynamics and
If you get this classmate as your partner on a series of projects throughout the year, rather than only once, Explain how might that change the outcome you predicted in part (b).
Both banks that each of their entire $20 million loan package will be written off as bad loans. Will any of the two banks survive this crisis? Explain carefully.
If you were an investor, would you support a project by starbucks to deliver starbucks product through a smart phone app within one building-say the Empire State Building, or the Columbia Tower in Seattle, or the Sears Tower in Chicago? Why and why n..
Which of the following would not occur in the short run if a binding price floor were raised in perfectly competitive market? What is price discrimination? Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is describ..
An economist estimated that the cost function of a single-product firm is: C(Q) = 120 + 20Q + 25Q2 + 10Q3. Based on this information, determine the following: The fixed cost of producing 10 units of output. The variable cost of producing 10 units of ..
What are the steps that the Fed can do to stimulate the economy? What are problems with those types of policies? How do you know that they will work?
Automobile industry is oligopolistic in which few automobile companies control significant percentage of the total market share. Do a little research and cite some data regarding the top ten automobile companies and their combined market share in the..
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