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Explain how premium business models work. Make sure to include the mathematical equations we used in the Dropbox case study to describe the economics of this type of offering (calculating how many paid customers are needed to support free customers).
The Bureau of Economic Analysis and access the BEA interactively by selecting "National Accounts" and then "National Income and Product Account Tables." Select "Frequently Requested NIPA Tables," and find Table 1.1.1 on GDP.
Speculate about the behavior that could result from these transactions and propose at least two (2) strategies for dealing with them.
The marginal cost of servicing a skier of either type is $10. If Snow City Ski Resort (third-degree) price discriminates then the profit maximizing prices
Suppose that the representative consumer's preferences change, in that his or her marginal rate of substitution of leisure for consumption increases for any quantities of consumption and leisure. Explain what this change in preferences means in more ..
Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income.
Distinguish between the resources market and the product market in the circular flow model.
The U.S. government strongly encouraged unions to be formed in the early 1940s because they held the view that unions would help to
The allocation of promotional dollars between ‘pull’ (consumer promotions + media advertising) and ‘push’ varies drastically for many advertisers across countries. What are the factors behind these variations?
Why US banking system is known as fractional Reserve? Why modern ban king systems are known as fractional reserve? What are the characteristics of frictional Reserve banking?
In an effort to bring inflation down they had set interest rates at 5% in 2018. How should the federal reserve react if they desire to bring inflation down to 3%. When will they achieve that goal? (Hint: maintain plenty of decimal places.)
Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.
The purpose of this problem is to study the sacrifice ratio. Assume that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent.
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