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1. What are the two requirements of price discrimination?
2. Why is producer surplus maximized under perfect price discrimination?
3. What are the two types of direct price discrimination?
4. What are some ways that a firm can segment its customers?
The generalized demand function for good A is: Qd = 600 - 4PA - 0.03M - 12PB + 15F + 6Pe + 1.5N where Qd = quantity demanded of good A each month, PA = price of good A, M = average household income, PB = price of related good B, F = consumer taste..
Compare this system with the PCAOB standards. Discuss differences. US students should analyze the oversight system in the UK and Europe as a whole, make a comparison and discuss differences.
The unemployment rate is the US fluctuated around 6% in 2002-2003 . Assume the full employment unemplyoment rate is 5% . What could the FED ( Federal reserve system) do in 2002-2003 in order to bring the economy back to full-employment
Suppose market demand is P = 130 - Q. a) If two firms compete in this market with marginal cost c = 10, find the Cournot equilibrium output and profit per firm. b) Find the monopoly output and profit if there is only one firm with marginal cost c = 1..
The employer now offers him time-and-a-half wages (1.5w) for every hour he works beyond a minimum of eight hours per day. Show how his budget constraint changes. Will he choose to work more than seven hours a day?
A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits
Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is U(S,T) = 2 ST. What is her marginal utility from shoes
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B doe not have a fixed service fee but instead charges $1
In a small town it has been discovered that the relationship between the number of radios demanded varies linearly with its price. When the price per radio was $15, 1000 radios were demanded; when the price was $30, 700 radios were demanded.
Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume..
calculate the probability that the mean passenger weight would exceed the maximum safe load as determined by the USCG. Two months after the accident, the USCG ordered the operator of the water taxi to reduce passenger load on all its craft by "abo..
Chez Henri is a restaurant chain that operates in forty different cities. It employed an economist to determine the factors affecting the demand for its sales.
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