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1. What is price elasticity of demand? How is it measured? If the price elasticity is -3 and $300 is the marginal cost of product X, what should be the optimal sale price?
(Hint: apply the mark-up rule)
2. What is meant by price discrimination? What are the conditions to make price discrimination effective? Discuss answers with examples from the Airline Industry.
Examine the characteristics of perfect competition. Think about the economic forces that lie behind the social attitudes and changes that have taken place in the labor market.
Which of the non negativity constraints on x1; x2 will bind for small m? c. Derive for the Marshallian demand functions and the indirect utility function. d. Derive the expenditure function for utility level u.
defines and explains a closed system and provides an example. defines and explains an open system and provides an
1. Even if a nation's money is not readily accepted as a medium of exchange and does not maintain a store of value, it can still function quite well if the government declares it to be the nation's legal currency.
The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, What is the most effective way of decreasing the quantity of drugs consumed and decreasing the amount of dr..
Find the price of a corporate bond maturing in 5 years that has a 5 percent coupon (annual payments), a $1,000 face value, and an AA rating. A local newspaper"s financial section reports that the yields on 5-year bonds are AAA, 6 percent; AA, 7 perce..
What is the most important guiding principle when choosing the correct size of catheter?
a nation to have commercial relations with other countries
Elucidate what are the effects of monetary policies on the economy's production and employment.
Describe the structure of the Federal Reserve System. What are the responsibilities and functions of each of the components of the Federal Reserve System? What are the instruments of monetary policy of the Federal Reserve System? Explain each one.
Think about the trade off in work and leisure during a given day, and from day to day. During a given day, does opportunity cost of work rise, decline, or remain constant with each additional hour of work?
Contrast the role of constant-cost, increasing-cost, and decreasing-cost industries in determining the shape of a long-run market supply curve.
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