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Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits? Explain your answer.
a. A local restaurant/bar offers discounted drinks during "happy hour," from 5 to 6 PM on weeknights.
b. The price Company X charges for its ink cartridges is nearly as much as it charges for a printer.
c. Packs of 5 T-shirts cost $10 while an individual T-shirt costs $4.
d. Coupons for specials at a local grocery store can be downloaded from an online site.
e. Computer and appliance manufacturers promote service contracts.
f. Microsoft Office includes several programs in one package.
Explain how did the early classical economists view the relation between productions also consumption.
Suppose that the Indian government reduces its deficit and returns to a balanced budget. If other thing remian the same, how will the demand or supply of loanable funds in India change.
No less than 1000 words (excluding the title page, bibliography and appendices). Question 1. A Study into the Key Principles of Economics.
Which of these types of firms can earn a positive economic profit in the long run.
Suppose that the average total cost (ATC) of producing 8 units is less than the average total cost of producing 9 units. What can we say about marginal costs (MC) in relation to ATC?
We never entertained the possibility that more than one market failure might exist simultaneously.
If deposit insurance were abolished, elucidate how would these change incentive structure facing deposit theory institutions.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
President Bill Clinton assigned his wife to task of developing a national health insurance plan to increase availability of medical care for poor. How would one determine opportunity cost of proposal.
if income were hypothetically $0 aggregate expenditures would be $2,500. What is the marginal propensity to expend?
the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. What is the average total cost.
Elucidate causes for shifts in supply and demand for the chosen product. Explain how these shifts in supply and demand influence price, quantity and market equilibrium.
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