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You are the manager of a firm that receives revenues of $60,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is -1.4.How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the two firms' products. From the consumer's perspective, there is an equal chance that a given firm's product is reliable or unreliable. The maximum amount this consumer will pay for an unreliable product is $0, while she will pay $250 for a reliable product.a. Given this uncertainty, what is the most this consumer will pay to purchase one unit of this product?$b.How much will this consumer be willing to pay for the product if the firm offering the reliable product includes a warranty that will protect the consumer?
why can the distinction between fixed costs and variable costs be made in the short run? classify the following as
A dramatic price increase in gasoline will have what effect on the equilibrium in the automobile market?
Normal 0 false false false EN-US X-NONE X-NONE Identify a specific brand t..
1.Consider the following delegation versus centralisation model of decision making, loosely based on some of the discussion in class.A principal wishes to implement a decision that has to be a number between 0 and 1; that is, a decision d nee..
sports authority and modells sporting are engaging into the following one-shot game if sports authority advertises and
The discussionin Section3 .7 suggestst hat Give up is optimal for Rich as long as (i) Kelly is very likely to win the immunity challenge once Rich gives up and
Suppose you could produce one more (the fifth) widget at a marginal cost of $5. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?
Identify an organization in that industry. Identify the market structure in which this organization competes. Clearly indicate why the market structure was decided upon, and how this market structure differentiates from the other alternatives.
Discuss a team project in which you participated. Was there a WBS? If so, what was your experience? If not, share how the project could have been improved by using this approach.
what is the mechanism in the economic system that guarantees the saving of the economy will always equal the investment
Do you think that college students are more or less informed than the average consumers? More or Less vulnerable to aggressive marketing techniques?
What forecast would you make for the merged firms' profits and what explanation might there be for such a strategy? After the merger, what prediction would you make about advertising rates?
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