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A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with auto-defrost at $150. a. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? b. What if women comprise the bulk of microwave shoppers?
Please select one item that you can see from where you are sitting right now – and list and describe as many people as you can think of that played a role in getting that item to where it is right now.
q1. a firm hires 2 workers also rents 15 acres of land for a season. it produces 150000 bushels of crop. if it had
If the rate of discount is 20 percent Would you rather receive $100 today or $120 in one year? b Would you rather receive $205 today or $240 in one year? c Would you rather receive $500 in one year or $610 in two years?
Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal..
Explain the design of a public policy that would subsidize the private performance of the R&D (to ensure that the research is done by the private sector) yet would minimize the public funds used.
Prove that the firm has decreasing returns to scale. Theresa received an order for 5000 units. Find the optimal K/L ratio, as a function of w/r. Next, assuming w = $20 and r = .10, solve for Ki*, Li*, and qi*. Then draw a graph, showing the isoquant ..
Determine the profit maximizing output and amount of profits for the firm. If the market demand increases to Q(d) = 57 - 4P, determine the new profit maximizing output and profits.
Monetary cooperation: Please compare the advantages and difficulties for flexible and for fixed exchange rates.
Two identical firms have access to a spring. Their marginal cost of bottling water from the spring is a constant 10¢ per bottle. The market demand for bottled spring water is P = 250−20Q, where P is the price (in cents per bottle) and Q is the quanti..
The graph shown demonstrates a tax on sellers. Which of the following can be said about the effect of this tax?
How effective would these actions be if banks remained re- luctant to make consumer loans while households remained reluctant to obtain loans? Briefly explain.
Florida is considering construction of a flood control dike having a life span of 16 years. The investment require is $60,00 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 pe..
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