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“This company is so unfair! They obviously don’t care about their customers. They __________!” complains Cindy Consumer. (the blank could be filled in with statements like: “They won’t discount their product like that other company,” or “(a hotel) charge a much higher price than other hotels in the area,” or “they used to take returns no questions asked, but now they have lots of restrictions.”)
1) Explain to Cindy why economists think her complaints are naïve. (Why firms mistreating their customers may actually be in their customers’ best interest!)
Most doctors would probably agree that a Mediterranean diet, rich in vegetables, fruits, and grains, is healthier than a high-saturated fat diet. Indeed, previous research has
The Republic of Ireland (what most of us refer to as simply Ireland), is an independent country but borders on Northern Ireland; the two countries make up the entire Island on
Calculate the present worth of the following geometric gradient series cash flow: Annual interest Rate =9.64 %, Annual cash flow increases 29% each year, The first year value
As you now know, the Phillips Curve shows the tradeoff between unemployment and inflation. If you were Chairman Yellen, in today’s current economic state, would you recommend
The Dallas Electronics Company is considering replacing an old, 1,000-pound-capacity industrial forklift truck. The truck has been used primarily to move goods from production
You own a franchise of rental car agencies in Florida. You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in an
When the demand for a good is price-elastic at a given output level: (a) total revenue is negative, (b) total revenue for the good will increase if its price decreases. (b) an
Initially, the Republic of Gorgonzola has no commercial banking system. Then, the government directs the central bank of Gorgonzola to put into circulation a million identical
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