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Pricing strategies.
A. In what situation should a firm offer "price matching guarantee"? Will such "price matching guarantee" increase or reduce profits? Explain.
B. Classical supply-and-demand analysis suggests that when the demand for a product increases, prices tend to go up. Still, we are now in the holiday season and everyone is shopping for gifts so there is more demand but many stores offer big discounts instead of raising their prices. Use the knowledge from the class to explain why holiday sale pricing is a common practice for retailers.
If CPI was somehow able to monopolize the market what would happen to the price of toothpaste, would it rise or fall? What would happen to the profits CPI makes via their toothpaste division?
According to studies undertaken by the Department of Agriculture, the price elasticity of demand for cigarettes is approximately -0.3 and the income elasticity is approximately 0.5. What effect would a 10% increase in the price of cigarettes due to i..
each price rise reflected a reduction of the silver in the coins. Discuss critically.
Discuss the conditions that will help the union achieve the objective. Why might a union be unable to meet its goal?
Set up an Edgeworth Box to depict this situation and elucidate why the situation is unlikely to be Pareto efficient.
On the graph below, use the blue points (circle symbol) to plot the federal debt as a percentage of nominal GDP for every of the five years elucidate how.
Boron Industries is a monopolist that owns two mines. Mine B is smaller and has less capacity, thus its marginal costs rise more steeply than Mine A’s. Mine A has TCa = 5000 + 50*qa + 2 qa2 Mine B has TCb = 8000 + 50*qb + 3qb2 a. Before knowing deman..
If the government were to make university attendance mandatory and subsidize tuition costs with tax dollars, how might this affect a nation's economic growth?
The U.S. government has a legal monopoly on the printing of U.S. currency. For the sake of this question, suppose the government decides to relinquish its monopoly—the Department of Justice will “break up” the federal government’s monopoly on U.S. cu..
If you fail to make your payments to TV Land, do they have a claim to your Calculate. Does TV Land or Calculate Land have to file a financing statement.
If your goal is to stabilize output, explain how you would change the interest rate in response to the following events (or shocks). In each case, show the effects on the economy in the short run using the IS-MP diagram. Consumers become pessimistic ..
Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..
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