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Two customers Justin and Cindy of the same product have the following demand curves: Q1 = 500 – 10 P and Q2 = 500 – 20 P. The marginal cost (MC) for the firm is $10. compute the prices when the firm discriminates among the two consumers. Is this a good strategy, or must the firm charge the same price to both of them?
Reconsider the "double marginalization" model. Show how the upstream firm can use a two part tariff when selling inputs to the downstream firm to achieve the same level of profits as under vertical integration.
each class member shall prepare a written report concerning the performance of a company of their choice.
between 1984 and 1985 the money supply in the united states increased from 570 billion to 641 billion while the
If the Social Security retirement system was a private retirement system, it would be declared bankrupt. Discuss why this is so and why the Social Security system can continue to pay benefits despite the fact that it can be considered bankrupt.
the market for gravel has been estimated to have these supply and demand relationshipssupply p 10 0.01qdemand p
Use the model of aggregate demand and aggregate supply to illustrate the initial equilibrium on a clearly labled graph. Label the equilibrium point A. be sure to include the short-run and long-run aggregate supply. The central bank raises the money s..
suppose you are a painter and the price of a gallon of paint increases from 3.00 a gallon to 3.50 a gallon. your usage
The key endogenous variable in the quantity theory?
In a meeting about whether to store inventory in a company-owned warehouse or rent a warehouse, a colleague says, "We should use our own warehouse and save the cost of renting one." Do you agree or disagree? Explain
. go to fred federal reserve economic data and search for pcecc96 real personal consumption expenditures - this is
Was this purchase a good deal for Khazad-dum Inc and what would then be the annual cost of Redwood National Park if the interest rate is 10% - What is the opportunity cost of the establishment of the park
Analyze the following statement: "In 1975, the official price of gold was abolished as the unit of account for the international monetary system. As a result, gold was demonetized as an international reserve asset."
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