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Define price discrimination. What three conditions must exist before a firm can use it? What antitrust act was relevant to the Von’s Grocery case of 1966? Why?
Which of the following is necessary in order for a firm to successfully practice price discrimination?
Suppose that there is a negative externality in the market for trout in Colorado. Letting Q represent pounds of trout, explain (using graphs and words) why government intervention in the market for trout may be appropriate.
Did the drop in price in the previous question increase revenue?
Round Table Rental Yards provides construction equipment, trailers, crutches, etc., on short-term rentals. Historically, Art, the owner, has purchased the items that he rents out, but his business has been expanding so rapidly that he is considering ..
Does trade under increasing returns to scale still make both countries better off, as the constant-returns-to-scale H-O model shows? Answer this question using both your diagram and an accompanying verbal explanation.
You are the manager of a gas station in a small town, and your goal is to maximize profits. Based on your experience, the elasticity of demand of Texans for a car wash is -2, while that of non-Texans is-1.5. Your marginal cost is $6. Are the conditio..
Your employer has asked you to prepare a plan to terminate the health insurance coverage your company provides and move employees to purchase health through the state or federal health insurance exchange (healthcare.gov). Discuss the advantages and d..
The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500.
Last year, a toy manufacturer introduced a new toy truck that was a huge success. The company invested $2.5 million for a plastic injection molding machine (which can be sold for a $2 million) and$100,000 in plastic injection molds specifically for t..
New source bias may exist for mobile sources. Briefly discuss why this bias leads to a solution that is not cost-effective. What policies would you implement to eliminate this bias?
Elucidate what do the opponents of globalization criticize. With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling.
Compute and indicate in diagram the level of domestic consumption, domestic production and imports of commodity Y at free trade price.
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