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Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits? Explain your answer. a. A local restaurant/bar offers discounted drinks during “happy hour,” from 5 to 6 PM on weeknights. b. The price Company X charges for its ink cartridges is nearly as much as it charges for a printer. c. Packs of 5 T-shirts cost $10 while an individual T-shirt costs $4. d. Coupons for specials at a local grocery store can be downloaded from an online site. e. Computer and appliance manufacturers promote service contracts. f. Microsoft Office includes several programs in one package.
q.assume an industry is composed of the following eight firms.company market sharefirm a 30 percent firm b 25 percent
Setting up nurse practitioner clinics to serve 20,000 newborns in Georgia would cost $6 million. This program would increase life expectancy at birth from 75.1 years to 75.3 years. How many life years would be gained? What is the cost per life year? ..
Some economists and analysts have said that the Telecommunications Act of 1996 has brought forth a structural transformation in the telecommunications industry. The provisions of the bill designed to remove barriers to entry into the
When full employment is reached the aggregate supply curve will (as we move to the right along the curve):
Public health information can be broadcast at a cost of $100. Public health information is a pure public good, in that many people can use the information simultaneously and preventing people from using the information is very difficult. At a price o..
Discuss whether horizontal or vertical boundaries have been changed, and whether they were extended or shrunk. Following the September 11, 2001 attacks, the U.S. government established the Department of Homeland Security.
How is it possible that in perfect competition some firms have economic profits equal to zero while others have a positive economic profit. Can they have a positive consumer surplus? Isn't it a contradiction?
Illustrate what variables or than cost appears or have biggest impact on demand for McDonald's products. How much influence does company have over se variables.
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..
Complete the following table by indicating whether or not each scenario is an example of price discrimination. Last-minute "rush" tickets can be purchased for most Broadway theater shows at a discounted price.
Submit the answers to to the following questions in the unit 8 drop box. You must explain your answer and provide your supporting computations. Why do we have a reason to expect that market forces will keep prices (adjusted for exchange rates) the sa..
Plot the goods in a graph with realness on the horizontal axis and (relative) exclusion cost on the vertical axis. (1) 1000 pounds of compacted scrap steel; (2) 1/2 ton of compacted scrap steel; (3) a mahogany tree in an inaccessible Central American..
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