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A firm can seek any combination of quality and price it chooses. Thus, it can go with a low quality-low price strategy or use one which combines high quality with a high price. Ideally, of course a high quality and a LOW price will be the most powerful.
In your opinion what combination of quality/price will be most successful and with whom? Why?
Is the last combination feasible? Explain.
List the combinations of hours spent playing golf and tennis that Cindy can now afford. along with the combinations in part (a), list Cindy's marginal utility per dollar from golf and from tennis. How many hours does Cindy now spend playing golf and ..
Explain how will the quantity of aggregate output supplied respond to the fall in prices. What will happen when firms and workers renegotiate their wages.
Currently, the island of Guam does not have a minimum wage need but uses the United States minimum wage as a reference. Give a theoretical justification for why imposition of a $5.15 minimum wage.
Explain how is Brazil affected, explain how does the size of this effect depend on the volume of trade between Brazil and the United States.
If the Federal Reserve sells government bonds, will short-term interest rates rise or fall. Explain how this will affect aggregate demand and the rate of growth of the economy.
Suppose voter A perfers candidate 1 to 2 to 3 to 4 (where there are 4 candidates). Show that all actions that consist of voting for up to three candidates and not skipping a lower numbered candidate are not weakly dominated (voting for 1 only, vo..
The amount that the government raises from the inflation rate tax is ΔM. (ΔM = change in money stock or the printing of more money or the change in the amount of money today from yesterday). Write ΔM as a fraction of nominal GDP.
donut ville caters to its retirement population by selling over 10,000 donuts each week. to produce that many donuts weekly, donut ville uses 1,000 pounds of flour, which must be delivered by 5:00 AM every friday morning.
Assume a firm has just introduced a new line of ceramic insulators for which it has received patent protection, effectively granting the company monopoly status in the industry.
Is the company charging the optimal price for the product. Demonstrate how you know.
Immigration is a major topic of concern in today's economy. What are the possible problems and solutions for these concerns? What could happen to the U.S. labor markets if immigration is not controlled?
Find out two articles that discuss the local, state, or federal taxation of a good. Describe the effects of taxation and price controls on the economy.
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