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a. It is relatively clear why price discrimination may be good for firms. But what about consumers? Do you think consumers benefit or are hurt when the firm is able to charge a different price to different customers?
b. It is often noticed that prices are much higher in many industries than economic theories would imply. One argument some have put forth for why this is the case is that “prices signal quality.” Therefore, on the margin, firms price a bit higher in an effort to improve the brand’s image in the consumers’ eyes.
•Do you agree with this?
•When do you think “price signaling” might actually work?
When might it not work?
•Do you have any examples?
The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 25010P . World producers can harvest and ship coffee to U.S. distributors at a constant marginal cost of $8 per pou..
Calculate the approximate total tax revenue if all of the coal burned in the United States was burned under a $100/ton carbon dioxide tax. Do this (a) for one year at the present rate and (b) for the total U.S proved reserves. Assume 100% carbon for ..
Suppose instead that the station seeks to maximize its profit from sales of the DVDs. Illustrate what price should it charge. How many DVDs should it order from which supplier.
The blue line circle symbols is a demand-for-money line and the orange line square symbols is a money supply line.
Evaluate the risk categories, countries, and industries represented in this index 2019s leading companies.
calculate the breakeven cost of the above air-conditioner with condenser using evaporative cooling if the MARR is 8% p.a.
Use the concept of a production possibilities curve to illustrate the choice between consumption of lifetime earnings during the period when the income was earned (horizontal axis) and consumption during retirement years (vertical axis).
The text notes that, if demand reversal were the cause of the Leontief paradox, then labor would be relatively cheap in the United States. Explain the reasoning behind this statement.
Analyze Gross Domestic Product (analysis of the selected economy's GDP composition and growth over time, as well as an investigation of the basis for income generation and any and all constraints to growth) , The monetary system ( including its devel..
Supply is given by the equation P=10+0.05Q. Demand is given by the equation P=600-0.05Q. Calculate the price and quantity at which the price elasticity of demand is equal to -1. How might you describe that point?
You have $100 to spend on food and clothing. The price of food is $5 and the price of clothing is $10. A. Graph your budget constraint. B. Suppose that the government subsidizes clothing such that each unit of clothing is half - price, up to the firs..
The sales manager for ABC Electronics wants to maximize his profit on the sale of two portable media player models, JVD-2000 and MDP-72. The wholesale costs of these models are $310 and $100 per unit respectively. The retail sales prices are $420 and..
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