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1. How can companies plan their pricing strategies? Explain in detail or give an example.
2. What is “temporal price discrimination”? Give an example of it.
3. Explain the case of Coca-Cola’s pricing discrimination scheme that occurred in the past and had a problem with.
4. What is “price contamination”? Give an example of it.
5. In which product categories is price discrimination more feasible?
Complete the following table for a perfectly competitive firm: Instructions: Enter your responses rounded to two decimal places. Output Total Cost Marginal Cost Average Total Cost Average Variable Cost 0 $100 ---- ---- ---- 5 110 $ $ $ 10 130 $ $ $ 1..
Suppose that sprockets are a perfectly competitive, constant cost industry with a large number of identical firms who have a long run total cost curve of TC(Q)=Q^3−4Q^2+10Q. The market demand curve is Q^D=250−2P. What is the long-run equilibrium pric..
It is difficult to compare the size of a nation’s economy to the size of a multinational corporation (MNC), as it is a bit like comparing apples to oranges. However, by almost any measure, whether comparing GDP or revenues, Conversely, what positive..
Below is the PPF for a society, Rubberland. On a given day, the society can produce according to the PPF below and only makes these two products, rubber band balls and rubber hoses. Point A on the PPF represents what Rubberland currently produces. As..
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
Draw a graph of money market equilibrium. Is the real or nominal interest rate on the axis? Explain why. Let’s say the Fed wants to lower the nominal interest rate. Use your graph to show how they do this. Explain. c. Define monetary neutrality. Expl..
Peter Evans emphasizes that states have to play specific roles in order to promote economic development. According to him what are the roles of the states in economic development? Explain and discuss. Compare Evans’s arguments with the neoliberal the..
What are the negative consequences of development? Can development occur without destruction of the old social fabric? Please provide examples where these will help to clarify your answer.
In Savannah, Georgia, the retail gasoline market consists of 8 firms. Firm 1 has 30% of the market, Firms 2 and 3 have 20% each and the remaining firms have 6% each. What is the four-firm market concentration ratio for this industry? Show your calcul..
Suppose a country has net exports of 40, transfer payments of 20, net investment income of -15, and a balance of payments surplus of 10. Find the country's current account balance and capital account balance.
The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Illustrate what effect will this have on its optimal price.
Consider the problem of carbon dioxide emissions. We will abstract from the complexity of the problem slightly, assuming there are polluters and consumers in two regions, the OECD (O) and the rest of the world (R). Proposal A involves the polluters p..
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