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In which cases would an organization benefit from using direct and indirect price discrimination? Does market structure influence the capacity of the firm to use price discrimination?
Solve for the number of permits each firm holds after a permit market operates, the price of the permit, and total private costs of the permit system.
One shortcoming of the Bureau of Labor Statistics Index of Labor Productivity is that it:
Dani’s work has raised her income from $100 a week to $110 a week. Her consumption of coffee has increased from 3 cups a week to 4 cups a week. What is the income elasticity of her coffee demand using the midpoint (arc) elasticity equation? (Type you..
Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..
(a) Will a monopolist's total revenue be larger with second-degree price discrimination when the batches on which it charges a uniform price are larger or smaller? Why? (b) How does a two-part tariff differ from bundling?
A monopoly is considering selling several units of homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 50-.25P, and the marginal cost of production is $120. Determine the optimal number of units to put in a pa..
Suppose that the profit a Honda dealership makes on selling an Accord is random and is given by the following probability distribution: 36% of the time the profit is 800, 26% of the time the profit is 1100; 18% of the time the profit is 1500; and oth..
Discuss the pros and cons of free trade, considering the perspectives of both advocates and critics.
Estimate how expensive the shopping basket plus a gallon of gas will be by 2019 if costs continue to rise as they did in the period from 2008 to 2013. (Hint: to determine the inflation rate in the price of each commodity do the following:) 2013 $ 78...
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but in which firms are operating below their minimum efficient scale.
If you were to take the position of a supply-sider which is a proponent of supply-side economics, illustrate what tool of Supply-side economics do you believe would help promote economic growth In the United States given today’s economic environ..
Would these Fortescue bonds be an attractive asset for investors? Why or why not?
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