Explain this pricing behaviour

Assignment Help Microeconomics
Reference no: EM13697404

Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behaviour.

Reference no: EM13697404

Questions Cloud

Economics in the current news : Take some time to think about the ways in which your learning in this class relates to the real world. Has the knowledge you gained been valuable in helping you understand or evaluate events or policies? Are there any current events in the news that ..
Use the mundell-fleming model to predict : Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of hte following shocks.
Main reason firms may exit market-costs of production : Which of the following is an implicit cost to a firm that produces shoes? The main reason firms may exit a market is because of: The costs of production do NOT include. If the cross-price elasticity between ketchup and hamburgers is ?1.5, a 2 percent..
International economics play in development-global market : Define what the Federal Reserve Bank is, how is it managed? Who runs the Fed and what role does it place in the economy? What role does International Economics play in development and global markets?
Explain this pricing behaviour : Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behaviour.
Deduce the demand functions-homothetic preferences : Homothetic Preferences. The preferences represented by >= are homothetic if for any two bundles X and Y such that X >= Y, we have tX >= tY for all t > 0. Solve the consumer's problem and deduce the demand functions.
What will be the ultimate cost to the city of the bonds : A municipality wants to sell 30 year bonds to pay for a new WWTP. Investors want a market rate of return on their money of 3.5% or higher for the tax free bonds. The City needs to raise $32.5m today.
Hypothesis of supplier induced demand : Is the existence of higher fees in areas with a larger physician/patient ratio sufficient evidence to support the hypothesis of supplier induced demand?
Alcohol generates a negative externality in consumption : Suppose alcohol generates a negative externality in consumption. If so, then

Reviews

Write a Review

Microeconomics Questions & Answers

  What was the role of the stock market and speculation

What was the role of the stock market and speculation in the Great Depression of 1929? What was the role of technology in the expansion of the stock market in the 1920s? What was the "consumer revolution" of the 1920s? How did the availability of cre..

  Do the conditions differ from ulility-maximizing conditions

The owner-manager of Good Guys Enterprises obtains ulility from income (profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures.

  Monopolist faces demand curve of and total cost curve

Assume a monopolist faces the demand curve of and a total cost curve-What do you notice about fixed costs in this case? Determine the monopolist’s profit maximizing level of output and price, as well as the amount of profit earned.

  Economics is about trade-offs if more scarce resources are

Economics is about trade-offs. If more scarce resources are used to produce one thing, fewer will be available to produce others.” Evaluate this statement

  Which of the families in the city will buy their shirts

Jim enters the town and makes a factory, which is employed by the locals. Every worker in the factory works on one machine and is able to produce 6 shirts per hour. The cost of running the machine is half a loaf of bread per hour, the cost to empl..

  Market model patterns of change

Industry and general pattern of change and hypothesize the basic short-run and long-run in a market economy

  You are on the board of directors of a nonprofit art museum

You are on the board of directors of a nonprofit art museum supported bydonations from wealthy members of the community

  Foreign competition

Due to foreign competition, the market price of recling chairs has fallen to 110. In the short run,

  Derive the marshallian demand functions

Derive the Marshallian demand functions and the indirect utility function, and confirm that Roy's identity holds.

  Demand-pull inflation differ from cost-push inflation

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  What factor could change the choice of production methods

Describe: 1) the process a firm should use in determining whether a particular production method should/should not be used AND 2) a factor or circumstance that could change the choice of production methods.

  Woes company capture and have available

select a company maybe your employer and assess how it uses data in marketing its products or services. if it is not

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd