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Please, read the article Hainer, R. (2010), provided in the required readings section for this week. The tobacco industry is a prime example to consider when talking about price elasticity of demand. While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers".What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of "social smokers"? Can we say whose demand is likely to be more elastic? Why?Guided Response:Provide your response to the discussion question in 300 words or more. Further, comment on the effectiveness of government policy aimed at reducing the negative effects of smoking on health. For example, consider high taxation on producers? - is that effective? Respond substantively to at least two of your classmates' postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
The Chief Financial Officer, Mr. Smith told him it was impractical because it would require the issue of common stock at a cost of 16 percent to finance the purchase. Is the company following a logical approach to using cost of capital?
Elucidate how economics regulation affects the market of telecommuniciation. Explain the entities affected by industrial regulation in terms of market structure.
e marginal cost of making a copy is $.50 (50 cents). The average customer makes 4 copies at a time. Illustrate what pricing strategy will maximize your profits.
Calculate the growth rate of nominal GDP between 2011 and 2012? e) Determine the growth rate of real GDP between 2011 and 2012?
Explain how many will be hired Daily Demand for Workers in a Purely Competitive Labor also Product Markets.
Suppose that Frank is considering giving Mike eight paper back books in exchange for 2 CDs. Explain the conditions under which this trade would be mutually beneficial. Also explain the conditions under which Frank and Mike won't make the trade.
Elucidate how industry consolidation has impacted the company and make projections about the long-term prospects for the company.
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
Assuming that the budget stays the same except for the interest on the debt for 10 years, illustrate what will be the accumulated debt. What will the size of the budget be after 10 years.
Compute point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points.
We said that an uncrowned country club golf course has aspects of public good.
The income tax is unfair to those who work hard to earn their incomes is an example of positive economic analysis.
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