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Explain how premium business models work. Make sure to include the mathematical equations we used in the Dropbox case study to describe the economics of this type of offering (calculating how many paid customers are needed to support free customers).
Perfect competition is a market in which there are many firms, each selling an identical product; many buyers; no barriers to the entry of new firms into the industry; no advantage to established firms; and buyers and sellers are well informed about ..
Five ice cream vendors take up positions along a beach of length one. You may take it as given that there is a Nash equilibrium with two vendors at some point x, one vendor at 1/2, and two vendors at point 1 x. Find x, and justify your answer.
Suppose we are with a real estate agency that has the following houses listed in a specific geographic area. $150,000; $146,000; $152,000; $155,000; $143,000; $157,000; $180,000; $148,000; $154,000; $146,000; $155,000
Explain what percentage change in the price of each of the three goods. Using a method similar to the consumer price index, compute the percentage change in the overall price level.
The Capitalpoor Company is considering purchasing business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and services. Assuming an income tax rate of 25%, a straight..
This graph shows an aggregate demand curve and an aggregate supply curve for an economy with no exports or imports. Adjust the position of one or both curves to elucidate graphically the scenario described.
George and Bill are stuck together on a desert island. There are two goods, Coconut (C) and Bananas (B). George has production function 5C+B=40, while Bill has production function C+3B=36. If they could not trade, George would choose to product 6C, w..
Clarify what action monetary policymakers must take for the actions of fiscal policymakers to have no effect on real income.
We can be certain that in the short-run a monopoly will produce the level of output that minimizes the cost on per unit basis. A well developed financial system helps reduce the effect of the initial investment requirement as a potential barrier to ..
What are the advantages and disadvantages of fixed versus floating exchange rates?
What is the smallest integer-valued annual compound interest that will result in an investment tripling in value in less than or equal to 12 years?
Nantucket Hammocks, Inc., uses dealer incentives, discounts, and sales contests in order to encourage retailers to give special attention to selling its products. Nantucket Hammocks is using
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