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Q. When McDonald's Corp. reduced price of its Big Mac by 75 percent, if customers also purchased French fries and a soft drink, Wall Street Journal reported that company was hoping novel promotion would revive its US sales growth. It didn't. Within two weeks sales had fallen. Using your knowledge of game theory, illustrate what do you think disrupted McDonald's plans?
Illustrate what price should firm charge to realize targeted profit. Illustrate what would be its (cost-based) mark-up ratio.
Depends on the evidence in this article and what you know about the economy in the United States, decide which of these statements is most likely to be true.
Do wages clear when the wage equals two. Do we know whether the equilibrium wage is higher or lower than two.
Elucidate how each change mentioned in the article impacts upon the aggregate expenditure model.
Determine impact on income of a 50 increase in government spending from 250 to 300. Using original data, compute impact of a 50 decrease in taxes from 125 to 75.
Why would unemployment also job rationing the consequences of setting a minimum wage of 2 dollar every hour in this marketplace
If a price in a competitive market is "too high to clear the market," what does this normally mean. Assume upward-sloping supply curves.
Assumed that each of the subsequent rows represents the choice faced by policy makers given the current set of U.S. institutions also technology.
A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Compute demand elasticity using the midpoint formula.
Please explain each effect of the three effects also explain the downward slope of the aggregate demand-aggregate supply model: Real-balances effect, interest-rate effect, and foreign-purchases effect.
Describe the output level where average variable costs are minimized. Determine the output level where marginal costs are minimized.
Which strategy offers both Westinghouse and General Electric the best financial outcome. Among which of the following is an example of a good with an inelastic supply.
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