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Imagine that you operate a small but popular and profitable restaurant/bar in a college town. There are several other restaurants and bars nearby. You have conducted a market research study and discovered that the price elasticity of demand for local residents is lower (less elastic) than the price elasticity of demand for college students, who are usually in town only while the college is in session about 9 months out of the year.
Discuss at least two pricing strategies you can use to increase your revenues and analyze them in terms of their ability to generate additional profits. Indicate any additional assumptions you are making.
Is there a good or service you purchase currently that is sold in something close to a perfectly competitive market?
The agricultural market for corn usually can be characterized as a purely competitive industry. How might the following events affect the shot-run cost curves and output for a firm in the industry?
The classical approach to macroeconomics assumes that A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets.
If the Fed changes the money provide to match the change in money demand, what will happen to the interest rate over time.
What if I were to say this to you? At the end of the term, I'm going to take away points from those students with A's and B's in the course and I will redistribute these points to those students who have C's, D's and F's. This will allow everyone ..
Illustrate the difference among dollarization, a currency board, and a fixed exchange rate regime. Do you know of any countries that have recently adopted dollarization.
Explain briefly the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.
Evidence suggests that there is less price competition in an oligopoly than other forms of market structure. Why is this the case?
According to your own experience discuss and describe Convertible securities.
Consider the following game between Sony, a manufacturer of video cassette players, and Columbia Pictures, a movie studio. Each firm must decide whether to use the VHS or Beta format - Sony to make video players, Columbia to release
Determine what effect on a country's current account balance is an increase in use of quotas expected to have? Would your answer change if other governments retaliate? If so, how?
How does the discount rate affect the decisions of banks in setting their specific interest rates - How does monetary policy aim to avoid inflation?
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