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Define price discrimination. What three conditions must exist before a firm can use it? What antitrust act was relevant to the Von’s Grocery case of 1966? Why?
Suppose to have a linear programming problem. It is known from the optimal solution that allowable increase of the b1 is equal to 30. Initial value of b1 is 40.
If a hospital decides to raise prices because it needs more money, what effect does this have on patients who pay their own bills/ patients with insurance/ hospitals with insurance contracts that reimburse on the basis of costs/ hospitals with previo..
Improved tooling for numerical control machinery will cost $9,693, last 6 years, and have no salvage value at that time. Due to this investment, net income will increase by $2525 during the first 3 years and by $3840 during each of the remaining 3 ye..
Budweiser, Miller and Coors, who together produce 80% of all beer consumed in the US, each spend well over $500 million a year on television advertising campaigns, promoting their beer brands. Do you think these firms would welcome congressional legi..
Are these ever mentioned? Explain. Q3) How would you compare the events of September 11, 2001 to those reasons listed? Q4) What is the difference between a "bull market" and a "bear market"?
Stan Money maker needs 16 gallons of gas to top off his tank. I he drives an extra 8 mile round trip Stan can save an extra $0.05 a gallon. Suppose gas costs $3.10 per gallon and Stan gets 24mpg. Each mile driven gives off CO2 that has an environment..
Suppose there are 10 individuals who value a good at {$10, $9, $8, $7, $6, $5, $4, $3, $2, $1}. If the MC is $1.50, what is the optimal price? Calculate the number of units that are sold, total revenue and total profits. Calculate the optimal prices ..
Suppose there are n identical firms in a market. Each firm’s cost function is given by C = 648 + 8q2, where q is the amount that an individual firm produces. This means that an individual firm’s marginal cost is given by MC = 16q. How much output wil..
A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let’s analyze the game between the two companies. Suppose that each company can charge either a high price for tickets or a lo..
When the exchange rate falls, in the foreign exchange market the quantity demanded of the currency increases.
Suppose a society consists of three cities (A, B , C. ) with populations of 99,000 , 51,000 , 6,000 people respectively. Suppose that the society has 15 doctors total. What cities will have how many doctors? If the number of doctors doubles to 30. Ho..
Explain in detail why it is important that prices are flexible in our economy? What are the implications if the government started to control prices for products, how would this influence buying?
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