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You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a manufacturer of children's outdoor swing sets, believes that reducing prices would lead to more sales. The client is aware that lower prices would yield less revenue per sale. However, the client is unaware of any other possible negative consequences of dropping prices.
1. advise the client of some of those possible consequences. Include a description of the psychological issues at play in dropping a brand's price.
2. identify and evaluate price-adjustment strategies beyond a straightforward reduction in retail price that the client should consider.
Historically the gold standard was the anchor for nearly every traded currency. Explain how the go Id standard worked as nations traded domestically and internationally at fixed exchange rates.
illustrate what does this mean for the survival of small firms in the industry.
Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.
Using Year 1 as the base year, what is the growth rate of real GDP from Year 1 to Year 2? (b) Based on the GDP deflator (GDP Price Index), what is the inflation rate from Year 1 to Year 2?
Explain how much money willyou have earned when the bond reaches maturity in five years.
Identify an economic issue that both parties address and compare and contrast their views on that issue. Generally speaking, how much of the disagreement is based on normative economics compared to positive economics?
Eagle Enterprises is a design company that sells office equipment, layout and furnishing packages to builders and developers. Bo Hernandez is a trade sales representative with Eagle Enterprises. A large part of Bo’s job involves attending industry tr..
What type of externality would your neighbor playing his sterol loudly exemplify? Can the Coase Theorem be used as a resolution for this conflict? Why or why not?
Assume you invest your money is a portfolio of stocks known as the S&P 500 (i.e. a portfolio of 500 stocks). Based on historical performance, in which investment horizon would you earn the largest annualized gain (i.e. percentage gain per year or ye..
Because the U.S. postal service is a monopoly and Congress sets postal prices through legislation, market forces do not determine stamp prices. New York City government auctions taxi medallions that give the right to transport passengers by taxi. Bec..
Calculate the approximate total tax revenue if all of the coal burned in the United States was burned under a $100/ton carbon dioxide tax. Do this (a) for one year at the present rate and (b) for the total U.S proved reserves. Assume 100% carbon for ..
The Short Run Total Cost of a firm is given by C= 190 + 53 Q. Find out the firm's total fixed cost. Find out the firm's total variable cost. Find out the firm's short run marginal cost.
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