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1. Explain how a firm can increase its profits through price discrimination.
2. How firms increase their profits by using odd pricing, cost-plus pricing, and two-part tariffs? Explain.
3. Define the law of one price and explain the role of arbitrage.
The management of the Mini Mill Steel Company estimated the subsequent elasticities for a unique type of steel.
Which of the following is true of the trends of imports and exports (measured by percentage of entire economy) in the US? 1) Imports up, exports down 2) Imports & exports both going up 3) Imports & exports both going down 4) Imports up, exports down
Explain how quantity of labour to be hired and wage rate would be determined if input market is perfectly competitive. output market may be either perfectly competitive or imperfectly competitive.
In 2008, the government initiated an $8,000 tax credit for first-time homebuyers in an effort to stimulate the housing market. This means that all first-time homebuyers in 2008 were eligible to take an $8,000 deduction from their taxable income for t..
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available, and individual income is $600, Px=15 Py=10, and they are already purchase 30 units of good X?
In the following situations, explain what is counted in this year's GDP:
An engineer must recommend one of two machines for integration into an upgraded manufacturing line. She obtains estimates from two salespeople. Salesman A gives her the estimates in future (then-current) dollars, while saleswoman B provides the estim..
Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all. "The laws of supply and demand indicate that higher ..
Your cat just won the local feline lottery to the tune of 3000 cans of "9-Lives" cat food (assorted flavors). A local grocer offers to take the 3000 cans and in return, supply 30 cans a month for the next 10 years. What rate of return, in terms of no..
The marginal ?revenue product is:
The stock recently underwent a 55?-for-44 stock split. If the stock was trading at ?$52.19 per share just before the? split, how much is each share
What is the difference between diminishing returns and decreasing returns to scale? Why are cost curves U-shaped in the short run?
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