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Managerial Economics:
a. Illustrate and explain price skimming as a form of price discrimination. How is the consumer affected by price skimming?
b. Suppose that an industry-wide decrease in fixed costs occurs. Compare and contrast the short-run effect on price for a firm that operates in a non- strategic competitive environment (e.g. perfect competition, monopoly, or monopolistic competition) versus a firm that is engaged in Bertrand competition. No diagram necessary. Make an intuitive argument.
What would account for the difference? Give an example of a specific brand for each type of car.
q.in the united states private schools charge tuition and compete against private schools that do not. one policy
Jane put $3000 into an empty saving account with a nominal interest rate of 6%. No other contributions are made to the account. With monthly compounding, how much interest will have been earned after 10 years?
You are consulting with a company that is failing. It seems the CEO (recently fired) paid no attention to the board of directors. He was also heard to say, "I don't serve stockholders, employees, and government regulators - they serve the CEO." Write..
Assume the market for new homes is competitive in a certain area. Demand for these homes (simple, starter homes) is given by P = 200,000 - 15Qd, supply for homes is P = 100,000 + 10Qs. What is the equilibrium price and quantity? What is Producer, Con..
On that basis it makes two claims: first that it has lower overheads than other dealers in the area because it has owned the land for fifty years
Define “trade creation” in the context of the formation of a customs union. Then, using a demand/supply diagram of a (small) home country for a good that is produced at home and would be imported if there were no tariff, illustrate and explain how th..
Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions. (Southwest Airlines)
The area between .58 standard deviations above the mean and 1.94 standard deviations above the mean .58=.2190 and 1.94=.4738.
Using the investment demand curve, what happens to investment spending in response to an increase in technology and how do I graph that?
The methods used by business can impact the productivity of the factors of production. Explain why this should be a concern for anybody who earns an income.
How are final goods that are unsold and held in inventory accounted for in the national income accounts? If the Federal government consistently runs deficits, and nothing else changes in the economy, what must happen to market interest rates and why?
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