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You are the manager of a firm that sells CD players and DVD players. You work in Buffalo, New York and this is the middle of winter. So the people that live within walking distance are the only customers you might get, and there are no other stores nearby. (FedEx and UPS can't get through the snow either, so don't think about these customers shopping online). You know that there are three different types of consumers who value your two products differently, but you are unable to identify these consumers individually at the time of the sale. Assume that the firm’s costs are zero. Also, assume that there is one consumer of each type. However, rs have the following valuations for the two products: Consumer Type DVD Player CD Player A $200 $500 B $700 $200 C $520 $0 a) If the firm sells the products separately, what price should it charge? How much profit will it earn? b) If the firm sells the two products as a bundle, what price should it charge? How much profit will it earn? Does bundling make sense here? c) Finally, suppose that the firm offers its consumers a choice. They can either buy the DVD player by itself for a certain price or they can buy the bundle at a different price.
What price should the firm set for the DVD player by itself? For the bundle? What profit will the firm earn using this strategy?
A Federal Reserve Bank has employed the economic consulting company to make a paper on how the use of money has changed over the past twenty years.
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Write your paper in the style of an academic journal article. The in-class readings, as well as articles published in The Rand Journal,
Assume that keynesian model applies to the economy in the short-run. After the stock market fell sharply in 2008, the aggregate denabd decreased greatly around the world. in order to prevent the short-run economic recession, which monetary policy ..
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Toys Corporation has estimated its demand and cost function what will be theprice and quantity if Toys would like maximize profits
Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal, petrol, and diesel.
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