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We are seeing a merging of media firms. For example, companies like Verizon now provide phone, cell, TV and internet. A common form of selling services involves putting them together in packages or “bundles” and offering them for a lower price than if the services were sold separately. For example, Verizon may offer a deal for phone, TV, and internet services. Also, firms bundle TV channels in different packages. All of these practices have become controversial.
Questions:
1. Do you think that the government should limit the bundling of TV channels by cable companies?
2. Is bundling a good idea for consumers? Explain your answer.
3. Explain the economics of bundling, both from a consumer and producer prospective.
Illustrate what is expected value of sample information. Explain how much might physicians be willing to pay for a market study.
when a cold snap hits florida, the price of orange juice rises in the supermarkets throughout the country. Illustrate the supply and demand table for this scenario.
If the government unexpectedly levies a five-cent tax on every gallon sold by gasoline retailers, illustrate what will happen to the representative firm's cost curves.
David black, representing the management of the automobile manufacturers disagreed with McDonald's assessment. Black cited studies that indicated price elasticity's ranging from 0.5 to 1.5.
The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000. How much output is being produced
Explain how each of the following developments would affect the supply of money, the demand for money, and the interest rate. Illustrate your answers with diagrams.
how should he change his bundle to reach his optimum? Explain your answer using the marginal utility condition at the optimal choice.
Bonds issued by the U.S. Treasury consistently have lower yields than other bonds mainly because:
Assume that the central bank refuses to change the interest rate from 10%. In this case, illustrate what is the new level of output. What is the money supply.
how many pineapples will she consume? If her income increases to $120, how many grapefruits will she consume? Are grapefruits a normal or inferior good?
Given the difficulties which the regulation of public utilities faces that would it not is better to nationalize public utilities as several European countries have done.
Suppose that the opportunity-cost ratio for watches and cheese is 1C ? 1W in Switzerland but 1C ? 4W in Japan. At which of the following international exchange ratios (terms of trade) will Switzerland and Japan be willing to specialize and engage in ..
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