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Suppose the Red Sox can segment their fans into young fans and senior citizens. Young fans have the demand curve p = 120-10G (MR = 120 – 20G). Senior citizens have the demand curve p = 60 – 10G (MR = 60 – 20G). Assume that MC = 0. What are the equilibrium price and quantity for young fans? What are the equilibrium price and quantity for senior citizens? How much additional revenue will the Red Sox generate by such segmentation if we assume that 50% of the population are young fans and 50% of the population are senior citizens?
Assume that the nation is not large enough to affect the world price. Illustrate the effects of a tariff on imports.
How company is the low-cost provider of these boxes with fixed cost of $480,000 per year, plus variable cost of $30.00 for each box. Annual demand and marginal revenue functions for the company are.
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Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations.
In a third world country, the central bank wants to reduce the inflation rate by 5%. The current money supply is $2.0 trillion and the goal is to have equilibrium in the money market (Ms=Md). What should be the new target interest rate to reduce the ..
How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold?
q1. you have been contracted by an economic consulting firm to determine the economic structure and possible future
a company that recently spent $10,000 to develop a statistical software package.
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Identify any externalities associated with initiatives to develop alternative fuels in the United States. How do these externalities affect the market outcome? Is it possible for a government's solution to a market failure to actually worsen the fail..
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