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What is the purpose of trade sales promotions? Identify three types of trade sales promotions that Frito-Lay should use to increase sales. Specifically how should these be implemented?
Show how a buyer with monopsony power sets its output, indicating the correct intersection on a fully labeled diagram. Is it correct that “a monopsonist hires fewer people at higher pay than would prevail in a competitive market”? Explain your answer..
Average cost includes both fixed and variable costs, whereas the marginal costs include only variable costs. Therefore, marginal cost is never greater than the average cost." Comment on this statement.
Calculate the four combinations of outputs of corn and rice for these 4 plans.
Why would the Department of Justice consider activities like blind booking, block booking, and full line forcing anticompetitive?
A market is characterized by a demand curve that can be expressed as P = 96 – (1/3) Q. Each of the two identical firms currently serving the market has a total cost function of the form C = 12 q. There are no fixed costs. If the 2 duopolists behave a..
The Chicago Board of Trade voted to create a private market for right to emit sulfur dioxide. The Clean Air Act of 1990 established a limit, beginning in 1995, on total emissions of sulfur dioxide from 110 power plants. Firms finding it relatively ex..
What is market failure? If a market failure is present, does this imply that government intervention will lead to a more efficient allocation of resources? Why or why not?
Using the data front Calculating growth Rates
Calculate the target cost for maintaining current market share and profitability. Can the target cost be achieved? How?
Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect..
Petra likes iPhone apps and epresso pods for her coffee machine. We denote the number of apps by X and pods by Y. Prices PX = 10. PY = 5. Her income in the period is 500. Her utility function is given by: (1) U(X,Y) = X^(0.4)Y^(0.6). What must her ne..
Most economists want a 0% target for unemployment. The current natural rate of unemployment is thought to be somewhere around 5%. If the economy is above full employment it causes higher than normal unemployment. In a closed economy, inflation repres..
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