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A monopolist has two types of customers. There are 100 of TYPE A, who will each pay up tp $10 for a single unit of the good, and 50 of TYPE B, who will each pay up to $8.00. Neither are willing to purchase additional units at any price. If it must find a uniform price what is the price? Assume that spending $80 on advertising will attract 100 more TYPE B customers. Should the monopolist advertise? If so what will happen to the price?
Plot the data on a scattergram with the S&P index on the vertical axis and CPI on the horizontal axis.What can you say about the relationship between the two indexes? What does economic theory have to say about this relationship?
Suppose You have been employed by an unprofitable company to determine whether it should shut down its unprofitable operation.
Describe the difference between a movement along the demand curve and a shift in demand and determine what factors cause the supply curve to shift? describe each factor.
Determine the impact of tariffs and quotas on international competition and discuss two recent examples and how it effected your employer's industry.
Calculate the extra output due to the water project and calculate the annual output of the village if the water project would be installed in $s
Demand and Supply curves. The following relations explain demand and supply conditions in the wheat industry:
Label the points representing choice C and choice D. If you are at choice C, what is your opportunity cost of increasing your chemistry score?
During 2005, Orlando, Florida, was increasing rapidly, with new jobs luring young people into the area. Despite rise in population and income growth that expanded demand for housing,
Why were the members of OPEC trying to agree to cut production? Why do you suppose OPEC was unable to agree on cutting production? Why did the oil market go into 'turmoil' as a result?
Two partners who owns IT Business Solutions, a company supplying specialist software, operate out of an office in Fourways, Johannesburg but have discovered a vacant office building close to Sandton City.
In a short run condition in which quantity demanded equals quantity supplied in a competitive industry, with value greater than the average cost of the typical company,
You're the manager of monopoly. A typical consumer's inverse demand function for your firm's product is P=100-2Q and your cost function is C(Q)=20Q. Find out the optimal two part pricing strategy.
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