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Durable goods pricing. Consider the example discussed in class. The monopoly sells two units of goods over two periods. The costs are zero. Consumer A has a valuation of 15 and Consumer B has a valuation of 10. Suppose the discount rate is ?=.8. If we allow Consumer B to have a valuation of k<15, at what value of k the monopoly is indifferent between selling both units in the first period and selling only one in each period?
paranoia the largest country in central antarctica receives word of an imminent penguin attack. the news causes
Explain the aims of counter cycliceal policy. Show how governments might achieve these aims by using the instruments available to them
What phase of business cycle is the US currently in? Explain in detail. Determine the latest GDP of the United State? How has the GDP changed since the 2007?
Assume the elasticity of demand for chewing tobacco is .60 and the elasticity of supply is 2.30. Suppose an anit-chewing tobacco campaign decreases the demand for chewing tobacco by 18%. The equilibrium price of chewing tobacco will decrease by ..
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's. What type of marke..
the region of acceptance will be wider than for large samples. the population is normally distributed. a larger computed value of t will be needed to reject the null hypothesis. the confidence interval will be wider than for large samples.
The Federal Reserve System [Fed] has a huge measure of political independence. The Board of Governors, appointed through the United States president and confirms by the United States Senate, serve fourteen year terms.
For what values of X do both ? rms have a dominant strategy? What is the Nash equilibrium (or equilibria) in this case?
The profit on a gold necklace is $15 and the profit on the goldbracelet is $25. A jeweler's showcase has room for at most 60necklaces and bracelets combined. The demand for the necklaces isat least 3 times the demand for bracelets.
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases.
Explain why a firm should continue to operate in the short run so long as market price is greater the firm's average variable cost at the profit-maximizing level of output.
Explain why do you think that whenever the government needs to raise their revenue they usually decide to increase the tax on items such as gas
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