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The Starfire Coffee chain was the only coffee-shop chain and meeting place in many American cities for more than 12 years. People paid $5 for a mug of peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends.
Twelve years after Starfire's appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges $3 for a mug of hot cocoa and a similar community experience.
How would you characterize this scenario?
Non-price competition in a monopolistic market Non-price competition in a purely competitive market Price competition in a monopolistically competitive market Price competition in a purely competitive market
What is a price taker? Discuss the assumptions that are made in order to obtain the perfectly competitive model.
is the gdp measure underestimating or overestimating national production and total income in the economy? why? what are
Has a deadweight loss been created? Why? Does the price ceiling cause economic inefficiency?
Other episodes which tested the leadership ethics of some of our well known companies were: Perier Water- contanminated bottled water; Pepsi- a cigarette butt in a can of soft drink; Fred Mayers Dairy (Cincinnati, OH)- contaminated ice cream.
Draw a well labeled graph of the market for paintbrushes. In your graph indicate the equilibrium price and the equilibrium quantity. Also, identify the area that corresponds to CS and the area that corresponds to PS.
Demonstrate each of the following events by a production possibility frontier graph, and examine what the effects of it were on economic growth;
Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously. a. Find q..
The unemployment rate is a deceptive indicator of the current and future state of the economy. How does the timing of lay off and hiring decisions made by companies describe the misleading characteristic of this indicator?
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
Compare the advantages as well as disadvantages of fee for service payments and a DRG-based payment system
Consider an exchange economy with two goods, 1 and 2, and two consumers, A and B. The consumers are initially endowed with a total of unit of each good, i.e. w1 = w1A + w1B = 1 and w2 = w1B + w2B = 1.
The bonds have the characteristics - What is the value of the bonds?
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