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The Boca Raton Company announces that if it reduces its price subsequent to a purchase, the early customer will get a rebate so that he or she will pay no more than those buying after the price reduction.
a. If the Boca Raton Company has only one rival, and if its rival too makes such an announcement, does this change the payoff matrix? If so, in what way?
b. Do such announcements tend to discourage price cutting? Why or why not?
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Discuss the appropriate discretionary fiscal policy that the government should adopt, given the above situation.
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Summarize an article using at least three economic terms and theories covered in class. Identify the impact of the policy on Demand or Supply of the good(s) or service(s). Discuss the change(s).
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Compute the total cost of providing this insured service to the plan before and after the change in coverage.
Suzy knows that she has maximized her utility, as she is on her budget constraint.
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During 2003 the value of oil increased, which in turn caused the price of natural gas to increase. This can best be explained by saying that oil and natural gas are:
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