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You are the owner of a nail salon. Your female customer's price elasticity of demand for manicures is -2.5; your male customer's price elasticity of demand for manicures is -1.2. The marginal cost of manicuring a customer's nails is $12.
a. If you segment the market by gender, what price should you charge women? What price should you charge men?
b. Explain intuitively why you should charge each group a different price.
Imagine a market setting with three firms. Firms 2 and 3 are already operating as monopolists in two different industries (they are not competitors). Firm 1 must decide whether to enter Firm 2's industry and compete with Firm 2, or enter Firm 3's ..
How does this affect the HR manager's hiring decisions?
Suppose demand for HP printers is estimated to be Q = 1000 - 5p + 10pX - 2pZ + 0.1Y. If p = 80, pX = 50, pZ = 150, and Y = 20,000; answer the following: a) What is the price elasticity of demand for HP printers
Determine the reaction function for each firm. Firm 1: Q1 = - Q2, Firm 2: Q2 = - Q1 b. Calculate each firm's equilibrium output. c. Calculate the equilibrium market price. d. Calculate the profit each firm earns in equilibrium.
certification roughly equivalent to a high school diploma. The demand schedule for new hires with le bac and the supply schedule for similarly credentialed new job seekers are given in the accompanying table. The price here- given in euros, the cu..
Draw the marginal-benefit and marginal-cost curves and show the optimum level of pollution abatement. (Related to Application 1 on page 663.)
Use figures to explain why the factories have temporarily or permanently shut down. How does a factory decide whether to shut down temporarily or permanently?
Calculate the Net Present Value and Rate of Return for the Project: Initial Cost: $100,000.00 Expected annual benefits: $20,000 Expected economic life: 10 Expected salvage: $10,000 Minimum Attractive Rate of Return: 12%
What is special about the prisoners' dilemma game? Is every game presented in this chapter a prisoners' dilemma?
Outline the main sectors of the macro economy. In what ways would you expect changes in exchange rate policy and international trade policy to affect the macro economy?
Calculate elasticity of demand at prices $8, $5, and $3. Price Quantity Purchased $10 1 $9 2 $8 3 $7 4 $6 5$5 6 $4 7 $3 8 $2 9 $1 10
What is the equilibrium outcome for this game? What kind of contract should the board offer? What level of effort should the CEO choose?
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