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Q. 1) Consider a firm selling two products, A and B, that substitute for each or. Suppose that an entrant introduces a product that is identical to product A. What factors do you think will affect (a) where a price war is initiated and (b) who wins price war?
2) Following table reports distribution of profits (on a per-disc basis) for different steps in vertical chain for music compact discs:Artist: $ .60Record company: $1.80Retailer: $ .60Use five forces to explain this pattern. (Note: re are about half a dozen major record companies, including Warner, Sony and Polygram. y are responsible for signing up artists, handling technical aspects of recording, securing distribution and promoting recordings.)
3) Consumers often identify brand names with quality. Do you think branded products usually are of higher quality than generic products and therefore justify their higher prices? If so, why don't all generic product makers invest to establish a brand identity, thereby enabling m to raise price?
Illustrate what is the opportunity cost of a potholder for Martha. What is the opportunity cost of a potholder for Stewart.
Discuss the long range effects of a stimulus plan as it affects the banking sector.
If deposit insurance were abolished, elucidate how would these change incentive structure facing deposit theory institutions.
Elucidate how consumers in an economy can be better ff if the marginal rate of transformation does not equal consumer's marginal rate of consumption.
Draw the MC cure for Guns in terms of the production of butter. If the economy produces 3000 guns per day, how much butter can it produce per day.
You find that the car requires repairs of 1,200 dollars in order to get it to run. Once it is repaired, it will definitely not break down again. Assuming that the car is worth 3,500 dollars after repairs, should you get it fixed.
Does either player have a dominant approach Does either have a dominated approach. Explain.
Which former Soviet republic currently a member of the Commonwealth of Independent States (CIS) has been the most economically successful in making this transition.
How much deadweight loss does Great Reception causes when it restricts output and charges a price above marginal cost.
We said that an uncrowned country club golf course has aspects of public good.
Illustrate on your graph and in words all important points and areas on the business cycle.
Coke could have followed the price per unit down, but it didn't. Total soft drink demand increased, and Pepsi took a larger share of the demand.
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