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Thanks to many of you who posted the price of the Deep Sea Rolex. Some of you touched on the restriction that Rolex places on output. That is correct. They do restrict the number of pieces they produce annually to just over a million watches. The demand is so great that they can sustain the high prices they charge for their product. This has resulted in a robust second-hand watch market for pre-owned Rolex watches. Now my final question to you is can Apple apply this same business model to the iphone? Why or why not?
A consumer has a budget of $200 to spend on bowling (b) and tutoring sessions (t). Assume that each game of bowling costs $16 and each tutoring session costs $20. Draw the consumer’s budget line on the graph below. Put bowling on the “x” axis. What i..
Gasoline prices typically rise during the summer, a time of heavy tourist traffic. A “street talk” feature on a radio station sought tourist reaction to higher gasoline prices. Here was one response: “I don’t like ’em [the higher prices] much. I thin..
Explain your answer statements be true at the same time. The unemployment rate in Tappania is higher now than it has been in 50 years.
Your the manager for a college football team. Assume you own the stadium and the variable cost per attendant is $0. You’ve been told by your in-house economist that you should set the price of tickets at $50 to maximize profit (at current, you set on..
Use the income statement below to find the financial ratios for (a) cost of goods sold, (b) gross profit, (c) operating expense, and (d) net income before taxes.
Olivia has a utility function is U = (Y)1/2where Y is her income in any given year. Next year, she anticipates her income will be Y=100. However, there is a 25% probability that she will be hit with a significant negative income shock such that he..
Suppose the Fed decided to purchase $50 billion worth of government securities in the open market. What impact would this action have on the economy? Specifically, answer the following questions:
Such retailers can sell as many copies of Vista they such as at the prevailing marketplace price of $200.
Q1. What is expert review? Describe the benefits and limitations of expert review. Describe the six different types of expert review methods.
Suppose there is a two-person and two goods pure exchange economy in which both persons have the same, strictly convex utility function and their utilities are increasing in their consumption of both goods . Would an allocation where one person has a..
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
The republic of Oakland is recovering from a financial crisis that resulted in a fall is the GDP growth rate and widespread unemployment. The prime minister has set up a crisis Recovery taskforce to discuss measure that will receive the economy. Whic..
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