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As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P = 20 – 0.001Q; on weekdays, it is P = 15 – 0.002Q. You acquire legal rights from movie producers to show their films at a cost of $25,000 per movie, plus a $2.50 “royalty” for each moviegoer entering your theaters (the average moviegoer in your market watches a movie only once). Devise a pricing strategy to maximize your firm’s profits.
The two goods are money and ice cream and eating more than a certain amount of ice cream makes the consumer sick. If you assume that the consumer can dispose of unwanted ice cream at no cost how do the indifference curves change?
Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 35%. Under Plan A it would use 25% debt and 75% common equity.
q1. from 1947 to 1997 the cpi in us raised to 637 therefore inflation rose 637. use this fact to adjust each of the
Many middle class and working class Americans objected to the rise of monopolies and trusts, although not always for the same reasons. Why did they believe that that these powerful big businesses were Europeanizing America? What kinds of solutions we..
Derive firm ones and firm twos best-response functions. Illustrate and solve for the output levels that constitute the Nash equilibrium. Solve for the market price at the Cournot-Nash equilibrium. Solve for firm-one and firm-two profits at the Courno..
The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market
q1. what are the most important things to consider when making a pricing decision for a good whose demand as well as is
Assume the marginal propensity to consume for U.S. households equals .9, and the marginal propensity to import for the united states equals .1. Suppose an increase in investment of $10 million occurs at each level of income. What does the value of th..
q. in 2002 roma was a schoolteacher and earned 40000. but she enjoys creating cartoons so at the beginning of 2003 roma
If inflation falls from 5% to 3% to 1.3% it is sometimes called. Typically the government: If the nominal rate of interest is 8 percent and the inflation rate is 3 percent, then the real rate of interest is: The unemployment rate is the percent of t..
Fixed costs exist only in:
Explain this result in terms of the example in the question above. How might things change if the border were open, with no restrictions on immigration?
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