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Economic Value to Customer
Economic Value to Customer = EVCx = [LifeCycle costs of a competitor's product in relation to a home firm] - [Start-up Costs for the home firm's product] - [Post Purchase Costs for the home firm's product] + [Incremental Value of the home firm's product].
limitations
What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?
When is the economic theory useless? One misunderstanding is to under-estimate the role of an economic theory. Several people thought an economic theory useless since they thin
Concepts of Income and Substitution Effects: Change in demand for a good due to one unit change in price of that good for given prices and money income is known as own price
what are the pros and cons of monopsony
TC = 1q^3 - 40q^2 + 840q + 1800 Price= $750
Discriminatory Fee Structure This method discriminates between courses and the economic condition of the family to which the student belongs. The cost of providing the educati
Arbitrage Pricing Theor y Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another
How are consequences of economists used? Economists generally use efficiency, information, equilibrium and incentive compatibility like focal points, and examine the consequenc
how do oligopolistic market and monopolistic competition react to change in demand and supply ?
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