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1. 10 consumers, ranked by their value for a network product v = 1...10, are deciding whether to connect to the network. If there are n people on the network, including oneself, then a consumer's willingness to pay equals n x v.
a. What is the highest price at which 4 people connect to the network?
(Hint: the person with v = 9 joins if the price is no higher than 18, since that would mean 2 people in the network: v=9 & v=10.)
b. What is the highest price at which 9 people connect to the network?
2. The demand function for the Msgr social network is related to perceived market share s and actual market share n by the equation:
p = 512s(1-n). Calculate the highest equilibrium price at which Msgr could sustain a market share of 75%.
(Hint: in equilibrium, perceived & actual market share will be the same.)
calculate the breakeven cost of the above air-conditioner with condenser using evaporative cooling if the MARR is 8% p.a.
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The demand for shoes can be expressed as Q = 100 - 10P., where Q is quantity and P is price.Using the midpoint method, what is the price elasticity of demand when the price of shoes goes from $5 to $6?
When companies in oligopolistic industries announce a proposed merger, it is often met with resistance from antitrust authorities (such as the Federal Trade Commission (FTC) and the Department of Justice (DOJ) in the U.S.). In the U.S., we have seen ..
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When consumer is provided a $50 gift certificate that is good only at store X, she moves to a new equilibrium at point D. Prices of goods X and Y. Explain how many units of product Y could be purchased at point A.
You borrowed $20,000 at a rate of 12% compounded monthly. It will be paid back in 60 equal payments over the next 5 years. Immediately after your 30th payment, you decide to pay off the balance. How much do you have to pay?
Classify each of the following statements as positive or normative. Explain. Society faces a short-run trade-off between inflation and unemployment. a reduction in the rate of money growth will reduce the rate of inflation. The Federal Reserve should..
Who are the stakeholders involved when it comes to the economic demands and society's expectations of post secondary education?
A shortage of a good occurs when: Who ultimately pays the tax depends on who writes the check to the government. If a buyers pay $10 per unit and sellers receive $8.50 per unit the tax is 1.50 per unit
Illustrate what factors may influence a household when deciding between buying stocks, bonds, or a house.
q. answer the following question using the keynesian model of a closed economy. suppose the federal government would
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