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Imagine that you own a pharmacy in your area. One of your competitors launches a "We will not be undersold" campaign, which promises consumers 150 % of any difference between its prices and the advertised prices of other pharmacies Develop and describe a microeconomic model that is responsive to the service demands of your market. Based on your conclusions, how would you react to this situation and with what business strategy would you approach this? How might you apply game theory to the creation of your strategy?
If the supply curve shifts to the right what happens to the equilibrium point (ceteris paribus)? If the supply curve shifts to the right, what does the resulting equilibrium point show us in terms of market price and the amount produced (ceteris pari..
Currently, boats rent for $500 per day and workers cost $100 per day. Suppose your company decided purchase 12 shrimp boats (Jenny 1 - Jenny 12). These boats are a fixed resource for the firm. Illustrate what is the short run total cost of produci..
They value campaign funding in terms of dollars spent. Therefore, after spending ci on a campaign.
What will happen to the equilibrium price and quantity of new cars if, simultaneously, the price of automobile insurance (a complement) increases and the price of steel decreases
Assume consumer equilibrium (budget curve and indifference curves). Draw 3 separate scenarios: (1) the price of good x decreases; (2) the price of good y increases; and (3) the budget (income increases). In each scenario, explain the effect on the gr..
Elucidate what is the minimal compensation t that induce the buyer to accept the exclusivity contract. What is the maximal compensation that the monopolist is willing to o er to the buyer.
What role do property rights play in creating common property resources? Why are common property resources subject to market failure due to non-excludability?
Suppose that the Federal Reserve injects 3 billion dollars by purchasing bonds from a bond dealer. show the new balance sheet of the commercial bank. Find the new money supply in the economy in two ways; Using the balance sheet of the commercial bank..
Should China set a fixed exchange rate regime with respect to the US dollar, or a floating exchange rate regime with respect to the US dollar? Why? What are the advantages and disadvantages of each regime? Discuss.
Review and chose a firm of your choice or one provided by your instructor. Is this firm a monopoly? In what ways could it be considered a monopoly? What markets are involved? What antitrust legislation would apply? Is antitrust legislation fair to yo..
Compensating differentials explain in part: how unions derive their bargaining power; why some people choose to aquire more human capital thatn others; how the income and substitution effects interact;
Two small case studies which are based on realistic business problems or situations. Each case study should end with a realistic writing task depending on own conclusions and suggestions.
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