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There are 3 main characteristics needed for a firm to price discriminate. 1. They have market power, 2. They must be able to prevent resale or market seepage, and 3. they need to be able to distinguish different types of consumers (different demand elasticities of their consumers).
The company Uber Technologies, the car service company is starting to use 3rd degree price discrimination.
Apply this criteria to determine whether price discrimination is likely to be successful.
How are they determining their profit maximizing decisions?
Suppose the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Explain. Suppose the one-year nominal interest rat..
1. Differentiate between the theoretical & empirical framework of research & give your own examples
You win the $20 million state lottery, and you have a choice of taking an amount of money per year for the next 20 years or a flat payment now. The flat payment that the state offers you is $9.82 million. What discount rate is the state using?
Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance.
According to the AD-AS model, what would occur to the price level and real Y if: (a) The government runs a deficit. (b) Businesses increase the quantity and quality of technology. (c) The Federal Reserve decreases the money supply and there is an inc..
Explain why physician groups and health service workers’ unions prefer stricter licensure requirements rather than cost control efforts from legislators. What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a d..
As parts of a project to monitor traffic in town, the governor secured a grant for $3.5 million that paid for 200 traffic cameras. If the 200 cameras are equal to 20 police agents, each having a salary of $65,000 per year, what is the rate of return ..
What is the relationship between Pigovian taxes and market failure? How do Pigovian taxes internalize externalities?
If Laura and Ring are planning to marry, should they do it in December or January? Assume that a December marriage implies a joint return for this year
State whether the following describes marginal cost, average total cost, average variable cost, or average fixed cost. (Note: some statements may describe more than one cost curve.)
What will be the monthly payment on a 30-year, $250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan? What will be the monthly payment on a 30-year, $250,000 mortgage l..
Do you think lawyers should be required to spend hours volunteering their legal services for pro-bono work or would a monetary contribution be sufficient? Why or Why not?
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