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As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P = 15 - 0.001Q; on weekdays, it is P = 10 - 0.001Q. You acquire legal rights from movie producers to show their films at a cost of $20,000 per movie, plus a $2 "royalty" for each movie-goer entering your theaters (the average moviegoer in your market watches a movie only once). Devise a pricing strategy to maximize your firm's profits.
Assuming that you get a summer intern job and a recession began while you are there. Write a memo to your boss, who is a member of Congress.
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
How would a regular LM curve be affected if the private sector demand for money balances increased following heightened uncertainty about prospects for bonds?
Explain these concepts address Google's opportunities and problems. What are some political and economic policies affecting Google and how do they influence decision-making.
As per increases in population and income growth that expanded demand for housing, the price of existing houses barely increased. Why. Illustrate answer with supply and demand curves.
In light of the theory of comparative pros are any restrictions on free international trade advantageous
Which of the following will most likely be an unanticipated economic change and higher oil prices resulting from a revolution in an oil-exporting country such as Libya
show the market for pianos in 2008. Between 2008 and 2009, the equilibrium quantity of pianos remained constant, but the equilibrium price of pianos increased. From this, you can conclude that between 2008 and 2009, the supply of pianos
Examine if Medicare, and CMS, are leaders or followers in the delivery of high quality healthcare in this country. What initiatives has the government undertaken in quality and risk management Debate whether governmental involvement helps, or hind..
At fenway park, home of the boston red sox, seating is limited to 39,000. Hence, the number of tickets issued is fixed at that figure. (assume that all the seats are equally desirable and are sold at the same price.) seeing a golden oppurtunity to..
(a) reduce shirking by employees and (b) reduce employee turnover What is the implication of the efficiency wage theory for unemployment In what way are piece rates, commissions, royalties, profit sharing, and stock options substitutes for efficie..
Illustrate what is the discount rate in the banking system and explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
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