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The local utility company applies a "declining block" rate structure for its industrial consumers, that lower unit price is charged for higher quantity blocks of electricity and water usage. Is the company practicing any type of price discrimination? If the company incurs diseconomies of scale due to capacity limits, will it be encouraged to do so?
(b) Most cell phone rate plans are provided as a two-part tariff: a monthly access fee which includes some free minutes and a per-minute charge for additional minutes. In addition, major providers usually offer several different types of rate plans and even options within each. Why don't they simply offer a single two-part tariff to all consumers?
Suppose that two years ago, you purchased a Jeep Wrangler SE 4WD with a soft top for $16,500 using five year interest-free financing.
Describe how the indicator was created and its current value. What does this key indicator say about the current economic condition.
If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.75, how will looming fears of a recession (expected to decrease consumers' incomes by 4 percent over the next year) impact the quantity of coffee ..
What is the prediction for the change in weight of someone who grows 1.5 inches? What is the predicted difference in weight between 2 people who differ by 6 inches in height? (c). Suppose that the sample average of H is 56 inches. What is the sampl..
Assume both the spot rates unexpectedly shift downward by 1%. What is the price of a forward contract otherwise identical to yours.
An example of a fiscal policy Lowering the interest rate on loans to corporations, Increasing taxes to pay for greater military spending,are they true or fslse.
Illustrate what are the comparative advantage that would exist when the selected country has a margin of superiority.
When 50 employees are used, the average product of labor is 50 and the marginal product of 50th worker is 75.
How much is equilibrium level of income or output if Fed decides to set the rate of interest at 10 percent (r=0.10).
A monopolist currently charges $50 a unit for the 100,000 units of product it produces and sells every month. An economic analysis has shown that,
Compute the own price elasticity of demand whenever the price goes from $5 to $4.
In 2005, The economist reported that France's real exchange rate had increased relative to Germany's real exchange rate during the preceding two years. How can this be true if both France and Germany used the euro as their currency.
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