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a) Why does Apple try so hard to make sure its products are sold only by retailers who have been approved by apple?
b) If apple had no control over which retailers sold its products, why would it want to be able to set a minimum price below which the retailers were not allowed to sell the products?
c) Is there a danger to manufacturers from having retailers possibly charge too high a price for their products?
A monopolist face a market demand curve given by QD = 22 - p. What is the value of the marginal revenue of the 4th unit produced?
There are 16 hours daily to be divided between working for day and leisure. Working yields hourly wages of $10. Any hours worked in excess of eight hours are considered overtime, and are compensated at $15 hourly. Produce the budget constraint implie..
Illustrate what should be the production level if the producer operates in a monopolistic competitive market where the cost of software at each possible quantity
What is the relationship between Maximum Likelihood Estiamtion's second-order conditions and the standard errors of the coefficient estimates? Why might two unrelated economic time-series exhibit a strong correlation?
a) The economist for the Grand Corporation has estimated the company's cost function, using time series data, to be
Assume you are an instructor of a college macroeconomics course. Using the Mitra Kalita (2011) article as a basis, compare and contrast the concepts of consumption, investment, and net exports in a PowerPoint presentation for your students. What impa..
What is the externality associated with an individual driving on a congested highway? how do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
Suppose demand (DU) for health care is given by P= -Q+50.(QAenotes quantity demanded of number of visits to the doctor, and A denotes the price of the visit. Du is graphed below. Graph demand for doctor's visits with full insurance (coinsurance rate ..
Suppose velocity of money is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Consider this a “baseline.” What is the rate of inflation in this baseline case? What happens if the growth rate of money..
In case of a Giffen good, income effect dominates substitution effect. All the points along the demand curve share the same elasticity. The marginal cost curve passes through the minimum point of the average fixed cost curve.
Generate options for solving the problem in the scenario. Evaluate the options for solving the problem. Decide on the best option for solving the problem. Explain how you will implement the decision made and reflect on whether this option was the mos..
Suppose that consumers’ incomes increase by 16 percent, which results in a 0.4 percentage increase in the consumption of farm goods at current prices. What is the income elasticity of demand for farm goods?
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