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Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic? Illustrate your answer by assuming that with advertising, a firm's demand curve has price elasticity of -1.5 and without advertising, it is -2. If MC is $10, what is the difference in the profit-maximizing price?
Suppose15 percent increase in the price of airlines causes a 10 percent decline in the quantity demanded then what is the elasticity of demand for airlines.
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.
Select 2 companies in the geographical location you live in and find out if they price discriminate. Why do these two companies price discriminate?
One of the important points of week one is scarcity and it applies to resources. What are resources Give some examples of the resources that you have at your disposal and how you use those resources. What makes them scarce
Joining marketsplace or developing countries across the world has presented attractive opportunities to global companies and thus, boosted FDI.
As a near-term solution, its engineers recommend a cooling technology known as an absorption chiller, which uses plain water as a refrigerant and semiconductors that cool down when charged with electricity. B&E is considering two options: Option 1..
Two indicators of economic development include Gross Domestic Product (GDP) and the Human Development Index (HDI). What is the difference between these two ways of measuring levels of economic development? Identify an advantage and disadvantage of..
The National Debt Try the following exercises to better understand how the national debt is related to the government's budget deficit Assume that the gross national debt is initially equal to $3 trillion and the federal government then runs a defic..
Aside from maximizing profits, assess the factors that managers must consider when making the decision to outsource or integrate forwards or backwards considering which factor would be most influential for decision-making.
Explain how might we interpret this statement in terms of cost curves and revenue curves.
What is her marginal rate of substitution when L = 100 and she is on the budget line? What is her reservation wage? What is her optimal combination of C and L?
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