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Suppose the University of Oklahoma decides to alter its tution schedule by separating its students based on how many credit hours they have accumulated. Students with fewer than 15 credit hours get a 13% reduction in tuition while students with 45-90 and more than 90 credit hours face an increase in tuition of 22 and 71%, respectively. Fully explain whether this pricing strategy is rooted in a sound understanding of the price elasticity of demand, or not.
Paradox Dental, Limited., enjoys a local monopoly in provision of oral examination services in Tuskegee, Alabama. Total and marginal revenue relations for standard procedure are:
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
Does the monopoly serve both groups of customers? Compare the monopoly’s profit from the optimal pair of two part tariffs with the profit that she could make if she ignored the poor consumers altogether.
show all cash flow diagrams1. a family decides to save for the college education of their kindegradener starting
What is the relationship between economies of scale and a natural monopoly? What is simultaneous consumption and how does it affect economies of scale? What are network effects and how do they contribute to economies of scale?
By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft What were the main benefits fromt he activities of the..
Differentiate between coaching and mentoring.
1. consider a macroeconomy was initially at equilibrium level.nbsp using the short run aggregate demand and aggregate
Rise in customers income will make increase in the quantity demanded.
1. Strictly speaking, pure competition never has existed and probably never will. Then why study it 2. Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures
So many states provide firms with an investment tax credit that effectively reduces the price of capital.
Suppose that the money market is initially in equilibrium and that money supply is then raised. Explain the adjustment toward a new equilibrium interest rate.
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