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Your dad is always trying different get-rich schemes. You decline his offer to help with the production process or to work. However, you agree to help him market the product through his website. His initial plan to provide 15 percent discounts to people based on their hair color - blonde people get a discount on vanilla ice cream, red-headed people get a discount on cherry ice cream, What is your advice to your uncle? Will the discounts based on hair color help to increase his sales revenue? Should he try other types of discounts? If so, what sort of pricing program would help dad make some profits?
You own and operate a chain of restaurants throughout the Atlantic States, and you have been in this business for over 40 years. From your experience, you believe your current store size provides the lowest average total cost for business in your industry. In the past two years, a new entrant into your market has built very large restaurants that are roughly three- times the size of your stores. They charge prices that are comparable to your prices, but they are getting a lot of attention and taking some of your market share. If you are correct about the industry cost structure and the new entrant has built stores that are far too large, what do you think will happen in this market? Should you respond by increasing the size of your restaurants? Are there other thinks you should do?
What are the advantages and disadvantages in making unethical decisions as a manager of a corporation that trade stocks and bond in the open public?
Suppose demand is given by QD = 100 – P and supply QS = P. If buyers pay a tax equal to 10, what is the after-tax demand? Do the same computations as the previous exercise, and show that the outcomes are the same.
Why wouldn't a much simpler analysis (such as a OLS regression or comparison of averages) have given an accurate answer? What empirical techniques are used in the article? How do they solve econometric problems?
Compare and Contrast an import quota and a tariff-rate quota (TRQ) in terms of how each one will impact exports, imports, prices, production, consumption and world trade using a THREE PANEL DIAGRAM.
Consider the following model: Rt = β0 + β1 Mt + β2 Yt + u1t Yt = α0 + α1 Rt + u2t - How would you justify the model?
Consider a consumer with preferences over newspapers (x) and books (y) that can be represented by the quasilinear utility function u(x,y)=x+2sqrt(y)
What happens to the expected real interest rate? Explain why the subsequent path of the real exchange rate satis?es the real interest parity condition.
Employees at Foxconn factories described in the e-Activity worked more hours than allowed under Chinese labor laws. Yet the violation of these standards is widespread in manufacturing and the demanding treatment of workers is commonly accepted. Co..
A single price monopoly has a marginal revenue curve that is
the supply and demand for one product can affect the supply and demand for substitute items. explain and give examples.
National defense is considered a public good because there appears to be no limits to the nonrivalry-in-consumption characteristic, and exclusion of nonpayers is impossible. Are there any other goods that so perfectly meet both public goods criter..
With a series of benefit cuts across many firms throughout the economy, some economists argue that nominal wage rates, a major cost of inputs for firms, have been decreasing.
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