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Q1. You have been hired to be a consultant on pricing strategies for two different companies. Both of the companies have similar customer bases in that their customers fall into two well defined groups: college students and young well-paid professionals.
Q2. When McDonald's introduced its Dollar Menu strategy in Fall 2002, why was the company hoping the demand for its product was elastic? Did this turn out to be the case? Why or why not?
Q3. Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy?
Assume your parking lot has two different consumers who utilize it at two different times.
Elucidate how much will each worker have to pay per unit to provide the socially efficient quantity.
decades has noting to do with the Department of Health and Human Services, but rather with the Internal Revenue Service. What evidence can you cite to support your position?
Why is it often difficult to develop a realistic analysis?
Assuming that a merger faces some threats also that the industry decides on self-expansion as an alternative strategy.
Determine how sensitive the decision to invest in the new facility is to the estimates of initial cost and net annual revenue. Use a MARR of 4% per year and a 5-year study period.
the government implements a 25% tax on labor income as a way to raise revenue. Calculate the excess burden resulting from this tax, and illustrate your answer with a graph
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
If the average adult produces $90,000 of output per year, how much output is lost as a result of adult deaths from secondhand smoke, according to the News on page 74?
Explain how the strength of the economy as a whole could affect the marginal benefits also the marginal costs associated
Wages are specified as dollars per hour of work and L represents number of workers per day. Determine total demand for plumbers in New York.
Illustrate what do you think would occur when there is little or no competition is a marketplace
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