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A local video store estimates that their average customer's demand per year is P = 3.5 - .05Q (all customers are identical), and knows that the marginal cost of each rental is $0.5. How much should the store charge for an annual membership (M) and how much for each rental (R) if it uses an optimal two-part pricing strategy?A. M = $4.5 and R = $2B. M = $5 and R = $1C. M = $9 and R = $0.5D. M = $12.25 and R = $0
In 2011, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers.
Discuss the importance of monetary policy and the tools the Federal Reserve uses to implement monetary policy and maintain stability of the financial system.
Greg wants to have $50 000 in five years. The bank is offering five-year investment certificates that pay 8 percent nominal interest, compounded quarterly. How much money must he invest in the certificates to reach his goal?
Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competition. What is the goal of creating a brand name for each of these market structures What does the brand name do to the demand curve for the prod..
calculating the rate of return of investment using financial leverage. suppose shaan invested just 10000 of his own
a city government is considering increasing the capacity of the current waste-water treatment plant. the estimnated
A government employer can demand urine samples from its employees, for testing purposes a. unless the demands are calculated to allow a determination of job fitness. b. only pursuant to a validly issued search warrant. c. at any time, for any r..
Explain the rationale for government regulation of companies with market power. Is regulation in the customers interest or in producer's interest and how might this control special interest groups?
suppose there is 120 million of cash and that half of this cash is held in bank vaults as required reserves that is
Identify who has the absolute advantage in painting rooms? Who has the absolute advantage in installing windows? Briefly explain how you derived your answer.
a company makes widgets and has a fixed cost of 45000 per month and a variable cost of 45 per widget. if the selling
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