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In part (c) of Learning-By-Doing Exercise 12.3, we suggested that the profit-maximizing structure for the first and second blocks for Softco is something other than the pricing structure we determined in part (b), selling the first 60 units at a price of $40 apiece, and selling any quantity above 60 at $25 apiece. Find the structure that maximizes profit.
Exercise 12.3
Why must a firm prevent resale if it is to price discriminate successfully?
Outline the benefits and problems of introducing a comprehensive scheme of marginal social cost pricing.
The researcher initially fits the equation using OLS regression analysis. However, suspecting that tax evasion causes both Y and X to be substantially underestimated, the researcher adopts two alternative methods of compensating for the under-repo..
You are requested to construct a model to predict the effect on the economy of the discovery of new oil reserves. How would you model the discovery? Discuss the number of goods that should be included in the model.
Suppose a particle rolling down (towards the xy-plane) the helix shaped track given by r(t)=(2 cos t, 2 sin t, t) flies off the track when t = pi/4. Determine the point where the particle will hit the xy-plane.
Is this a significant improvement? What other classes would you add to the effort multipliers listed in Appendix 7A to improve the capability and accuracy?
Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers.
Carefully look at the facts and explain your answers to the issues in a formal memorandum by using search and seizure law, the facts and reasonable inferences from those facts.
How might a critic respond to the claim that taxes always make the allocation of resources less efficient?
Consider all facts given and rewrite the auditor's report in acceptable and complete format incorporating any necessary departures form the standard unqualified report.
Based on these data, describe the relevant relationship between the price of a hamburger and the quantity consumers are willing to purchase, using a verbal statement, a numerical table, and a graph. Which model do you prefer and why?
The accompanying graph (on next page) shows the demand curve for gasoline and the supply curve for gasoline. The use of gasoline creates negative externalities, including CO2, which is an important source of global warming.
An investor lends $10,000 today, to be repaid in a lump sum at the end of 10 years with interest at 10% (=im) compounded annually. What is the real rate of return, assuming that the general price inflation rate is 2.7% annually.
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