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You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.7 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for midsized Honda automobiles is -1.4. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 20 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $12,000. What price should you charge for a midsized automobile if you expect to maintain your record sales?
The macroeconomic principles we will explore were developed by an English Economist back in the 1930s as a method for bringing Europe and the U.S. out of the Great Depression. If the economy is operating at a point less than full employment (as it is..
What is the role of developed countries in promoting development policies in developing countries?
Should the government increase the minimum wage? What should be the GUIDELINES for an increase? What are some of the disadvantages of an increase?
What performance percentage would you use to trigger executive bonuses for that year.
In markets economics, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the diference.
In a price leadership oligopoly model,
What benefit do economic models provide to decision makers seeking to manipulate economic conditions? In your posts, specifically address the models GDP, GDI, and their major components.
Explain briefly the various parts of the circular flow diagram representing the interactions between households and firms in a simple economy.
q. i choose a sweater at the price of 12 in the past month. describe how each of the 4 factors contributed to the
It has just been announced that large deposits of oil have been discovered in Chile. It will take five years for production to begin, but after that time Chile will become the world's largest oil producer by a large margin. How and why does this anno..
If you consider about the welfare of people via carbon emission, solution you think is to impose carbon. Would it be imposed on only private sector or both private and public sectors (since bus, train and plane are services of public sector, it also ..
Elucidate the evidence that supports these recommendations and how your recommendations might need to be modified for the alternative economic futures
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