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Question
Suppose demand for Microsoft software in the US is: P = 200-Qus, and marginal revenue is MR = 200-2Qus where quantity is measured in millions. Demand for software in Canada is P = 100-2Qca and marginal revenue is MR=100-4Qca. The marginal and average cost of production for Microsoft is $50.
How much profit will Microsoft make if it charges different prices in the US and Canada?
And Suppose it charges a uniform price of $100 in the two markets. Show that this strategy is inferior to international price discrimination.
More people in high-income countries than in low-income countries tend to believe that rapid rates of economic growth are not desirable. Which of the following best explains what is actually happening to real per capita GDPs of countries?
What statistics and linear algebra book do I need before reading Hayashi's Econometrics? Basics linear algebra book seems too simple for the linear algebra part, and Casealla's statistical inference is missing out detail/too basic for the statistical..
Which of the following would most likely make demand price elastic?
Explain why, in assessing the economic effects of trade, it is important to explain how international trade affects the rate of technological change.
Explain in detail why it is important that prices are flexible in our economy? What are the implications if the government started to control prices for products, how would this influence buying?
Which of following is true of monopoly and not of perfect competition?
Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..
Explain how to measure the price elasticity of demand and supply and the cross elasticity income elasticity of demand? Explain how you would calculate the price elasticity of demand for gasoline.
Due to the guarantee, the firm can borrow $50 million for five years at 8 percent interest rate per year instead of 10 percent per year.
Identify two individuals that benefit and two individuals that are harmed by rent control.
Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.
Illustrate what is included in determining any of measures of money supply. If spending increase is 80% and it increases by $40 billion, Explain how does that change GDP.
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