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1. How does mixed bundling differ from pure bundling? Under what conditions is mixed bundling preferable to pure bundling? Why do many restaurants practice mixed bundling (by offering a complete dinner as well as an à la carte menu) instead of pure bundling?
2. How does tying differ from bundling? Why might a firm want to practice tying?
Explain under what condition the MRS equals the price ratio rule (as a condition that the optimal solution has been found) can be violated.
Given this situation, what would you recommend to the managers so that they can maximize profit? How much labor will be required each year?
Price sensitivity: Many goods and products are now made overseas in countries where labor is cheap. Highly paid workers here in the USA – especially unionized workers -cannot compete with factory workers in countries like China, Taiwan, Vietnam, Indi..
Describe why it would cost Andre Agassi or Venus Williams more to leave professional tennis tour and open the tennis shop than it would for the coach of the univeristy tennis team to do so.
Determine how does globalization lead to greater competition in market place? Discuss the implications for market structure in industries opened to global competition?
equilibration is the process of moving between two equilibrium points as a result of some change in supply or demand.
What are the facotrs involved? What were the circumstances? How was the dilemma handled? What were the consequences?
What is the monopolist's profit-maximizing combination of price and quantity and What is the firm's profit?
explain several dimensions of the shareholder-principal conflict with manageragents known as the principal-agent
Draw Aggregate Demand, Short Run Aggregate Supply, Long Run Aggregate Supply diagram, starting at the long run equilibrium. Show on the diagram what happens to a given economy when the government lowers income taxes for all citizens. Show on the diag..
Would you consider the demand for eggs to be elastic or inelastic and illustrate and explain with a diagram how can the Government intervene and correct this situation
Suppose you are a manager of a factory and purchased five new machines at one million dollars each. You can sell two of the machines for $500,000 each and three of them at only $200,000 each. What is your sunk cost?
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