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Publishers have traditionally sold textbooks at different prices in different areas of the world. For example, a textbook that sells for $70 in the United States might sell for $5 in India. Although the Indian version might be printed on cheaper paper and lack color illustrations, it provides essentially the same information. Indian customers typically cannot afford to pay the U.S. price.
a. Using the theory of price discrimination carefully analyze the given scenario to explain this differential pricing strategy.
b. If the publisher decides to sell this textbook online, what problems will this present for the pricing strategy? How might the publisher respond?
You recently hired an economist to work with engineering also operations experts to estimate the production function for a particular line of office chairs.
Annie White graduated from coollege with a student-loan debt of 32000.The interest rate on this debt is 0.5%per month. if monthly payment on this loan are$618.65,how many months will it take for Annie to repay the entire loan?
If firm A expects firm B to set its price at $20, what is firm A's best response? If firm B predicts that firm A will price good A at $36, what is firm B's best response? What is the NASH EQUILIBRIUM price and quantity for each firm?
Consider a league with two teams that might engage in doping. If neither team engages in doping, the odds that Team A will win the league championship are 65% and the odds that
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When Bonnie increases the consumption of Good A and decrease the consumption of Good B, her marginal utility of...
What examples of 1) elasticity, including an explanation of why or how they demonstrate the concept of elasticity; and 2) examples of externalities, again including an explanation of why or how they demonstrate the concept of externalities
You purchase a new smartphone for $650. Suppose that during one year, there is a 0.2 probability that you will drop the phone, a 0.2 probability you “send it for a swim” (drop it in water), and a 0.6 probability you avoid all accidents. If you drop t..
Category Amount:: Durable Goods $1,000, Non-Durable Goods 2,500, Services 7,000,Fixed Investment 1,800, Changes to Business Inventory 35, Investment in Stocks & Bonds 5,500, Federal Government Purchases 1,200. Using the above table determine the amou..
(a) Calculate the average credit taken by the retailer, in days. (b) Give a brief explanation of the average credit taken by the retailer.
Assume the money supply (M) is $1,200 billion, bank deposits (D) are $800 billion and the required reserve ratio is 10%. What would the Fed have to do (in terms of open market operations) to lower the money supply by 5% ? Explain.
When the wage rate rose from $6.25 per hour to $6.75 per hour, employment in Fast food, Inc. fell from 5,100 to 4,900. What is the price elasticity of demand for labor?
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