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In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought to eliminate price negotiations between customers and new-car dealers. An article in The New York Times (August 29, 1999) reported that a New Jersey Mercedes dealer who had his franchise revoked is suing Mercedes, claiming that he was fired for refusing to go along with Mercedes no-haggling pricing policy. The New Jersey dealer said he thought the NFP policy was illegal Why might Mercedes NFP policy be illegal?
Can you offer another reason why the New Jersey dealer might not have wished to follow a no-haggling policy?
Explain how do governments borrow funds to finance deficit spending. What is likely to happen to interest rates in the market.
Assume you were doing lunch with your best friend who just enrolled in an economics class. He was complaining about how irrelevant the class was,
Explain why the marginal revenue curve for a monopolist lies below its demand curve, rather than coinciding with the demand curve , as is the case for a perfectly competitive firm. Is it ever possible for monopolist's marginal revenue curve to coi..
Discuss the roles of external economies and knowledge spillovers in shaping comparative advantage and international trade patterns. Introduction, literature survey, theoretical framework, suggested implications and conclusion.
Determine the optimum order quantity and the corresponding totalrelevant cost
Elucidate as accurately as you can how each of the following individuals which would be affected by unanticipated inflation of 10 percent per year.
explain what will happen to real wage rate The real wage would decrease since there would be a larger working population. The real wage would increase as productivity increases.
Airline travels (good X) and driving interstates (good Y) are known to be substitute goods. suppose that a leading airline offers a steep discount on all routes. In the context of the market quantity supplied and quantity demanded diagram.
You need to find the new interest rate that is required to stimulate I. the increase in I has to be sufficient to push the overall Y level back to the original Y level that you have found in (i).
There are various forms of unemployment. There are also ongoing debates on the effectiveness of measuring the rate of unemployment and its policy implications.
In your own words, describe the meaning of average cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in ..
As manager of Citywide Racquet Club, you must estimate best price to charge for locker rentals. Assume that the (marginal) cost of providing lockers is 0.
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