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Two consumers Justin and Cindy of the same product have the following demand curves: Q1 = 500 - 10 P and Q2 = 500 - 20 P. The marginal cost (MC) for the firm is $10. Calculate the prices when the firm discriminates between the two consumers. Is this a good strategy, or should the firm charge the same price to both of them?
Interpret the coefficients of the regression model. Which independent variable has the strongest impact on the dependent variables
Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are allowed to put out as many cans as they wish. The average household disposes of three cans of garbage per week under this plan.
Consider the RPM (resale price maintenance) model of consumer service. Show that the levels of customer service that emerge in equilibrium are below the levels that would emerge under vertical integration
Beer and pizza are complements because they are often enjoyed together.When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza
If the Fed chooses the money supply at the same time as people are setting wages and prices, so that everyone has the same information about the state of the economy, then monetary policy cannot be used systematically to stabilize output.
1. indicate whether each of the following statements is true or false and explain why. do not simply give a corrected
The demand for new homes in the United States is often described as highly cyclical and very sensitive to housing prices and interest rates.
Explain the two causes of market failures. Given their definitions, could a market be affected by both types of market failures simultaneously What divergences arise between equilibrium output and efficient output when (a) negative externalities a..
Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. • What are the required reserves of People's National Bank Does the bank have any excess reserves
Suppose the person lives for two periods, U = u(c1) + bu(c2), and can acquire an asset at price q, with c1 = w1 – qa and c2 = (d + q*)a + w2, where d = dividend and q* = selling price.
outline the possible work disincentives created by anti-poverty programs. is there a way to solve this problem without
in the 1970s congress imposed an excess profits tax on these companies. it did not do so this time? what does this
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