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When you buy a set of speakers, Best Buy asks if you would like to purchase insurance for your speakers. Assume that paying for new speakers for customers who listen to music at a reasonable level (thus minimizing damage) costs, on average, $150, and paying for new speakers for customers who listen to music very loudly (more likely to damage the speakers) costs, on average, $1000. Individuals know whether they like music at a reasonable level or at a loud level, but Best Buy can assume that 40% of listeners are reasonable listeners, and 60% are loud listeners. How much does Best Buy have to charge in order to break even?
A $660 B $1000 C $150 D $575
Do you agree that the only way to raise equilibrium quantity is to raise supply and demand together? Why agree or why not agree?
Evaluate the "Accuracy" of the forecast for the "hold out period" using RMSE and MAPE error measures used from forecast period residuals and comment them.
Businesses usually decide in using automation and labor in production. An automotive environment may have high fixed costs and low variable costs,
When the CR = 80%, is the market efficient when the market behavior follows the price leadership model?
What is the present value of your wealth at the beginning of your life, what is the largest constant consumption stream you can afford and what borrowing/lending strategy you will use to accomplish b.
Assume that the market for Mexican pesos begin in equilibrium. Then, the Mexican economy experiences a severe recession. Because of the recession, the Mexican companies lower their prices. As a result of the recession and lower prices in Mexico.
We make selections as customers every day. Opportunity cost is defined as a person's next best alternative or cost of what you give up when you make a choice.
Consider the competitive market served by many domestic and foreign firms. The domestic demand for such firm's product is Qd=500-1.5P. The supply function of domestic firms is Qsd=50+.5P, while that of the foreign firms is Qsf=250.
What are the facotrs involved? What were the circumstances? How was the dilemma handled? What were the consequences?
Consider two firms X and Y that produce identically tasting cold drinks. In order to raise the demand for its cold drink, firm X raise its advertisement outlay.
It is supposed that the liquid soap market is perfectly competitive and current price of a case of liquid soap is $42.00. The firm has estimated it's marginal cost function to be as follows: MC=0.006Q.
A monopolist that practices perfect price discrimination will choose an output level where marginal revenue is equal to marginal cost to maximise profit.
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