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About two-thirds of all households now purchase two or more bundled telecommunications services from the same company (e.g., local telephone, long distance telephone, video, cell phone, Internet, etc.).
a) Explain why consumers frequently prefer bundled telecommunications services and under what conditions suppliers can increase their profits by bundling such services.
b) Does the purchase of bundled services make consumers better off? What about the sellers of the bundled services (e.g., Verizon, Cox, Comcast, etc.)?
c) How do products/technologies such as Skype and set top boxes on televisions disrupt bundling?
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
What is wrong with claiming that changes in the distribution of income are associated with trade instead of the technological changes that the article discusses.
how much does the total amount of deposits in the banking system increase? By how much does the money supply increase. In the u.s. today, money includes which of the following items federal reserve bank notes in citibank's cash machines.
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).
Elucidate in writing to what market your derivation brings equilibrium and how it accomplishes this. What are the principal differences between flexible and fixed exchange systems.
A monopolist with a straight line demand curve finds that it can sell two units at $10 each or ten units at$2 each. Its marginal cost is constant at $8 per unit. A monopolist would produce how how many units and charge how much? A perfect competitor ..
Suppose that the government is debating whether to spend $100 billion today to address climate change.
q1. illustrate what is a random walk? explain how is halls random-walk model of consumption related to the life-cycle
Illustrate what new decisions will you make regarding production levels also pricing for your Widget facility.
Show mathematically that for any upward sloping SRMC, SRATC is strictly convex, crosses the SRMC curve at the lowest point on the SRATC curve, and the SRMC curve is rising at that point.
Explain how high must the deductible be to encourage low-risk behavior
The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
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