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Question: The U.S Postal service has been raising postal rates on a regular basis. The service had been losing money. One of the reasons is increased competition from companies such as United Parcel Service and Federal Express. Another reason is the use of faxes and email, as well as electronic bill payment. With this decrease in demand for postal services, why do you think that the Postal service is seeking a rate increase? Carefully Explain.
If the two are generally not competing on price, are there any forms of non-price competition that might emerge? If so, describe them. Or would such other forms of competition also exhibit "kinked type behavior"?
How many minutes of calls would he or she make under plan - Calculate the consumer surplus for each of the plans.
The long-run supply curve for a good is a horizontal line at a price $3 per unit of the good. The demand curve for the good is QD = 50-2P. then what is the equilibrium output of the good.
What are the market characteristics of Monopoly. List at least two. Identify a company in your local or generalized area that you would classify as a monopoly.
Suppose you do not want to be disturbed by phone calls in class and are willing to pay $5 for the first minute call reduced, $4.5 for the second minute reduced, and so on. Drive the formula for your marginal benefit and draw the MB curve.
Suppose that the consumer spending initially rises by $5 billion for the very 1 percent rise in household wealth and the investment sending usually rises by $20 billion for every 1 percentage point fall in the real interested rate.
tiger-el is an upstream manufacturer of electric trains that sells wholesale to the great toy store the only such store
Economies of Scope) Distinguish between economies of scale and economies of scope. Why do some firms produce multiple product lines, while others produce only one?
Does your company tie compensation to meeting a budget? If so, what kinds of problems does this practice cause? What can you do to fix these problems?
If they both produce 10,000 litres a day, they will make the maximum attainable joint economic profit of $200,000 a day, or $100,000 a day each.
Explain the three types of goods: search goods, experience goods and credence goods. What type of advertising would firms likely use for each type of good and why?
Given the following table showing possible terms of trade for country I and country I's corresponding demand for imports of good Y at each terms of trade:
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