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RawDeal is the new sushi bar in the neighborhood. Their estimated marginal cost is 10 cents per sushi unit. RawDeal estimates that each consumer has a demand for sushi given by q = 20 - 10 p, where q is number of sushi units and p is price in dollars per unit.
1. Determine the optimal price per sushi unit.
2. RawDeal is considering switching to an all-you-can-eat-sushi policy. Determine the optimal price per customer. How does profit compare to pricing per unit?
3. Discuss other advantages and disadvantages of each pricing option.
4. Ignoring implementation costs, what is the optimal two-part tariff for sushi (i.e., a fee at the door plus a price per sushi piece).
Illustrate what effect will each of the following events have on the current account balance and the exchange rate if the exchange rate is fixed.
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine.
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions? The American Medical Ass..
The long run natural rate of unemployment is 5%. The current rate of unemployment is 3% what do we expect to happen if no policy is used. If no policy is used in the long run we would expect the CPI to [increase, decrease, stay the same]
Which of the following institutional practices was identified by Oldman as contributing to regular roulette players’ belief in the “skill-based” nature of the game, in the casino where he was a participant-observer?
Linus has the utility function U(x; y) = x + 3y. Draw the indierence curve that goes through point (3,3), and the indierence representing combinations that gives Linus a utility of 6. a) Describe the shape of these indierence curves. If the price of ..
A) For given factor? prices, when average product per worker is at a? maximum, average variable cost is ______
Toyota bonds are currently rated AA, and Ford bonds are rated BB, Suppose the price of 1,000 one year Toyota bond is 970$. What is the rate of return on the one year Toyota bond
You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market with many competitors in this market. Should you increase or decrease production? Should you increase or decrease price?
The economy is hit with a positive LRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
How would implementation of a marginal cost pricing system for water impact total agricultural consumption and total urban consumption of water in California?
Market demand is given by P = 140 -Q. There are two firms, each with unit costs = $20. Firms can choose any quantity. Find the Cournot equilibrium and compare it to the monopoly outcome and to the perfectly competitive outcome. Why isn’t the latter e..
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