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A retailer of winter coats prices each at $500 at the beginning of the selling season and after three months reduces the price of any unsold coats to $350. Using a simple demand function, show how charging two prices can dramatically increase profits for the retailer. [1]. Explain why the same argument does not work for toothpaste.
What is the current macroeconomic situation in the U.S.? What should the Fed do about it? What monetary policy tools should the Fed use to achieve the result(s) you just recommended?
Suppose the price level and the value of the dollar in Year 1 are 1.0 and $1.00, respectively. If the price level rises to 1.50 in year 2, what is the new value of the dollar? Assume that John Nash has $10,000 in his checking account and uses his che..
Consider a piece of property that is jointly owned by two individuals, each of whom owns a one-half share. Suppose that in order to sell owner 1 requires $3,000 for his half share, but owner 2 requires $6,000 for her half share. Suppose instead that ..
Real GDP is: A.the base year market value of all final goods and services produced domestically during a given period.
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
q1. mark consumes only cookies and books. at his current consumption bundle his marginal utility from books is 10 and
As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 70 - 1Q, and your costs are C(Q) = 22Q. Determine the socially efficient price and output. Determine the monopoly price and output.
Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose that an individual's inverse demand for wireless services in the greater Boston area is estimated to be P = 100 − 33Q and ..
q1. briefly discuss the similarities and differences between producer equilibrium and consumer equilibrium.q2. assume
Illustrate what would happen to the total employment, the size of the labor force, and the unemployment rate? Show the results graphically.
Which type of health insurance plan would you choose the PPO plan or the HMO plan? Why would you make this choice? What things are important to you when selecting a health insurance plan (i.e. monthly payroll deduction, co-payments, deductibles, serv..
Use the Keynesian-cross model to illustrate graphically the impact of an increase in taxes on the equilibrium level of income.
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