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Soft selling occurs when a buyer is skeptical of the usefullness of a product and the seller offers to set a price that depends on realized value. For example, suppose you're trying to sell a company a new accounting system that will reduce costs by 10%. Instead of naming a price, you offer to give them the product in exchange for 50% of thier cost savings. Describe the information asymmetry, the adverse selection problem and why soft selling is a successful signal.
If the entry barrier is removed consumers will be better off because consumers will enjoy greater consumer surplus. Explain.
Suppose Sammie Wall currently has a monopoly on widgets. The inverse demand function for the only customer interested in widgets is [P=40-6Q] and the cost to produced widgets can be described by the following cost function: [C=10+2Q^2] . If Sammie de..
Be thorough when discussing the following questions about e-business and entrepreneurial functions.Why is there a trend toward cross-functional integrated enterprise systems in business?
Why should this policy be undertaken under conditions where economy is at some GDP level less than full employment level? You may use a long run aggregate supply curve to bolster your argument here.
Assume that the market for beef in a small and isolated community is described by the following two equations: Q = -150 +150*P and Q = 600, where Q represents quantity and P is price. Similarly, assume that the market for beef is described by the fol..
You are advising the stakeholders of a small firm that is one of a handful of manufacturers of disposable contact lenses, wetting solution, and other products related to eye care. The stakeholders are wrestling with a proposal to implement a price in..
Why does hedging usually take place with a forward contract.
Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50 and the unit price of the input is $9. The level of productivity and the per-unit cost of production are, respectively:
What will be the CS, PS, tax revenues and deadweight loss? Suppose the government increases the tax to $4 per unit. What will be the new CS, PS, tax revenues and deadweight loss?
What is the total period costs incurred for this period?
Find the correlation coefficients for business generated and psychometric test score, business generated and experience, and business generate and qualifications - based on these findings, which one criteria would you recommend to use in selecting..
Suppose disposable income increases by $2,000. As a result, consumption increases by $1,500. Answer the following questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage. The increase in savi..
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