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In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)? Prospective customers must be categorized according to willingness-to-pay. A. Prospective customers must be categorized according to willingness-to-pay. B. Opportunities for resale of the good or service must be limited. C. The provider must have excess capacity to accommodate the extra business. D. Both a and b.
A production facility is looking at installing a wind turbine which will cost $175,000 at time zero. The wind turbine will allow them to have free electricity and they know they’ll use all the electricity it provides. The wind turbine will have a 6 y..
The market for tennis shoes has a horizontal supply curve and a linear, downward-sloping demand curve. Currently the government imposes a tax of t on every pair of tennis shoes sold and does not tax other goods. The government is considering a plan t..
q1. in recent decades americans have increased their purchase of stocks of foreign base companies. the americans who
q.paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area. the view was a large
If free trade and greater foreign competition causes markets that were previously oligopolistic to become monopolistic, is this good for the consumer? Is free trade and competition better for any workers unions that may have existed within the previo..
Explain the role of the following factors in the upswing in the financial cycle that preceded the global financial crisis:
Explain the main channels through which the Fed can influence economic activity. Which theory has provided a better model, Classical or Keynesian, when it comes to prediciting how money affects the macro economy? Explain
A competitive industry produces a unit of sulphur dioxide with every unit of its output. The private marginal cost (PMC) in the industry is 2+(Q/2) when Q is the number of units of output. The social marginal benefit (SMB) of the industry's output is..
The City of Arlington Texas spent approximately $325 million on the new Dallas Cowboys stadium which opened in 2009. The city financed the expenditure with special-purpose bonds anticipated to cost approximately $21 million per year to service. What ..
You have been pondering opening a food cart, as one does in Portland. You will only be open for lunch and expect to charge $6.5 per meal. Food carts usually have a 5X on food costs so you expect to charge five times the food cost. What is the highest..
De Beers is a monopolist which supplies diamonds with constant marginal cost and constant average total cost. Draw the average cost, marginal cost, demand and marginal revenue curves. Show the price charged by De Beers without price discrimination.
A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. what is the present worth..
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