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1. How does price discrimination help customers?
2. Profits are a sign of a business exploiting its customers and workers. Profits are a sign that a firm has served its customers well. Pick one statement and defend it or critique it.
3. Some say a monopoly can charge whatever price it wants. This is not true, explain why? What restricts a monopoly? (government regulation is not the answer here).
q.consider the application of the demand-revealing process to land assembly that we discussed in class. we defined d as
Suppose that the Fed permanently increases the growth rate of the money supply. According to the Friedman effect as discussed in class, what will happen to both nominal and real interest rates in the short-run? In the long-run? Explain why.
Adjust the benefit or cost curve or both to illustrate the private also social benefits also costs in the market for electricity.
Your reading on the topic of price controls should allow you to have some insights on certain situations that could emerge under stressful conditions. Imagine that a natural disaster struck a certain area of the country. Immediately basic goods such ..
Research and define Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). How are they the same and how are they different?
What are the differences among horizontal, vertical, and conglomerate mergers? What does the U.S. government hope to achieve through the use of its antitrust policy
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe now has an absolute advantage in producing spaghetti? Which has the comparative ..
Two countries will have zero incentive to trade if their production possibilities curves are parallel straight lines because. One country has a comparative advantage in the production of both goods, thus providing that country with no incentive for t..
Suppose that the public wishes to hold $0.35 in pocket money (currency and coin) and $0.25 in time and savings deposits. Suppose that banks wish to hold $0.20 for each new dollar of transaction money received. Suppose that $0.05 finds its way outside..
The statistcs shows that government antimonopoly policy has been applied more harshly to the textile industry than the automobile industry. Can you give an alternative explanation for the difference in the number of firms in the two industries?
Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to the keep the existing auger. It has a current market value of $12,000 and it will have a $0 salvage value a..
What is the annual worth of an asset that costs nothing and gives you benefits of $3 in years one through 10? Assume your MARR is 20%.
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