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a. Sarita signed up with Netflix for a fixed fee of $16.99 per month. For this fee, she can receive up to 3 DVDs at a time in the mail and exchange each DVD as often as she likes. She also receives unlimited instant access to movies being streamed from Netflix to her computer or TV. During the average month in 2010, Sarita received and watched 6 movies sent to her through the mail and she watched an additional 13 movies which were streamed to her computer. What is the average cost of a movie to Sarita? What is the marginal cost of an additional movie?
b. The principal of Hamilton High School found that requiring those students who were failing algebra to attend an after- school tutoring program resulted in a 30 percent average increase in their algebra grades. Based on this success, the principal decided to hire more tutors and require that all students must attend after-school tutoring, so everyone's algebra grades would improve.
c. People who drive hybrid automobiles recycle their trash more than people who do not drive hybrids. Therefore, recycling trash causes people to drive hybrid automobiles.
Determine whether your commodity is a necessity or a luxury product. Identify the availability of substitutes for the chosen product and explain how the necessity of a good and the availability of substitutes impact the price elasticity of the prod..
Our customers who choose to keep a car for an extra day are currently paying the same base daily rate. Do you see any potential in exploring alternative schemes? If so, what changes should we implement-shall we change the price for extra days? Wha..
Describe a situation of incentive misalignment that you have personally observed (ideally in your personal work environment, but could also be in a relationship, in the consumer marketplace, in public policy, etc.) and generally describe a way to ..
People are more likely to clean up waste in their homes than at a community park because people expect the community park to be dirty.
The output effect of an increase in the wage comes about because higher wages:
Define depository institution, and discuss types of depository institutions are found in the U.S. and how do they act as intermediaries between savers and borrowers?
describe the market structure of perfect competition in terms of number of producers, control over price by firms in this market, type of product in terms of differentiation, barriers to entry into this market, and whether economic profit can be..
Discuss why it would cost Pete Sampras or Venus Williams more to leave the pro tennis tour and open a tennis shop than it would cost a coach of a tennis team to do so.
Briefly discuss the concept of both positive and negative externalities and give specific examples of each. In your explanations of the two, cover the differences, discuss why property rights are an important variable, and discuss any other releva..
If the goal of the transit authority was to maximize total revenues, what is the new price it should set? Also, what would the total revenue raised in this new price scheme?
During the job interview, the Vice President understood that you had received rigorous training in managerial economics, and you were able to choose some appropriate methods to predict the market movement.
Why is marketing necessary for a practice or hospital to be successful? What considerations should be taken into account when marketing health care services or products? (Hint: Think about all the medication ads you see on TV or in magazines - how ..
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