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Q. The first company is a trendy bar. The bar is currently seeing many young well paid professionals as customers, but quite a bit fewer college students. The bar has run a marketing campaign to attract more college students, but that only caused a small increase in thenumber of those customers. The second company is an electronics store selling items such as iPods. This company is also currently seeing many young well-paid professionals as customers, but quite a bit fewer college students. The electronics store has also run a marketing campaign to attract more college students, but that also only caused a small increase in the number of those customers. Both of these companies want to know if they could make some changes in their pricing strategy to increase their sales to college students and thereby increase their overall profits.
Prepare a recommendation for each company. Should your recommendations be the same for both companies? If not, what are the differences?
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Economic surplus could be increased at a higher price because firms would generate more revenue.
A county is considering using a piece of park land for one of two alternative recreation projects.
The social security system levies a tax on workers and pays benefits to the elderly. Suppose that Congress increases both the tax and benefit.
Budget line showing the various combinations of scores on the two exams that she can achieve with a total of 400 minutes of studying.
Suppose that a pay equity plan has just been put in place in your organization. The pay equity consulting firm did a job evaluation and assigned points to each of the male-dominated and female-dominated jobs.
In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
What is the opportunity cost of Josephine's trip to the wedding
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Fully evaluate these regression results, including computation of t-statistics, adjusted R2, and the F-statistic.
Consumers buy from the lowest price firm, and the highest price firm sells nothing. If the firms pick the same price, they split the market demand equally.
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