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For each of the following examples, explain how and why a monopoly would try to price discriminate.
a. Air transport for business people and tourists
b. Serving food on weekdays to businesspeople and retired people. (Hint: Which group has more flexibility during a weekday to adjust to a price change and, hence, a higher price elasticity of demand?)
c. A theater that shows the same movie to large families and to individuals and couples. (Hint: For which set of people will the overall expense of a movie be a larger part of their budget, so that demand is more elastic?)
The question related to Economics and mainly Macroeconomics. It is clarify about the problem as suggested by the media about the current account deficit in the US.
rise in government spending increase employment and aggregate output in the short-run. Show graphically and use the GDP equation to support your answer.
The initial price of cup of coffee is $1.00 and at that price, 400 cups are demanded. If the price falls to .90, the quanity demanded will increase to 500.
Describe the types of information employees at an Apple store require and compare it to the types of information the executives at Apple's corporate headquarters require. Describe the links between these two types of information.
Calculate the percent misalignment (in log terms) for China, Venezuela, Switzerland, Norway, using Purchasing Power Parity, using the US as benchmark
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
I'm trying to discuss whether integration between the following types of firms would constitute a horizontal, vertical, or conglomerate merger.
Most systems of medical insurance substantially lower the out-of-pocket costs consumers have to pay for additional units of physician services and hospitalization. Some reduce these costs to zero.
By early 2008, most economists believed we were heading towards recession. Congress and the President passed an Economic Stimulus Package (Expansionary Fiscal Policy) and the Federal Reserve cut interest rates (Expansionary Monetary Policy). Expla..
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
Federal government employs a budget plan over several fiscal years that results in significant increases in the national debt, with no relief or plans to deal with the problem.
When economists with different political views do cost or profit comparisons, they often reach different decisions. If their analysis is based on objective costs and valid techniques, why would not they reach similar decisions,
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