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Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic. Find a product that has not already been selected by another student and describe its price elasticity and income elasticity. How much control might an organization have over pricing based on a product's elasticity? Discuss which of the elasticity rules you used to determine your answer.
Movie theaters generally charge the same ticket price for all movies with evening show times, regardless of popularity. This pricing strategy causes surpluses (empty theater seats) for unpopular films and shortages (turning away prospective viewers) for popular films. How can movie theaters improve the pricing strategy to eliminate these inefficiencies? What is a disadvantage to your suggested approach?
Explain the market equilibrating process
Explain Law of diminishing marginal returns and total productivity.
Marginal analysis benefits and costs? How it relates to everyday
What is an opportunity cost? How does the idea relate to the definition of economics? Which of the following deci- sions would entail the greater opportunity cost: Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typ- ical suburb for such a lot?
What is a convertible bond and why do investors find such bonds attractive? What advantages do convertible bonds have for the issuing firms? What stakeholder group might be harmed when a firm issues convertible bonds?
Question on platform market
How do stocks and bonds differ in terms of the future payments that they are expected to make? Which type of investment (stocks or bonds) is considered to be more risky?
A laser-based system installed for B = $150,000 three years ago can be sold for SP = $180,000 now. Based on 5-year MACRS recovery, BV3 = $43,200. GI for year is $800,000 and annual operating expenses average $50,000. Decide TI and taxes if Te = 34 pe..
1. the quantity demanded isa. a contradiction to the law of demand.b. an amount per unit of time at a particular price
advantage of cheaper labor to manufacture items
Exposure to exchange rate risk.
Three machines are employed in isolated area. They each produce 2,000 units of output per month, the first requiring $20,000 in raw materials, the second $25,000, and third $28,000.
Suppose that demand takes the form X = p-a for a > 1. Show that the monopoly passes on more than the full cost increase to consumers. (That is, dp(e)/ de > 1.)
1. why does rent control result in a shortage of rental units.2. how does price elasticity of demand affect how much of
Which of the following market structures will have higher prices in the long run than perfect competition?
Explain graphically and verbally what happens to the market in the short run and in the new long run equilibrium if factor prices and demand are assumed to remain the same as before.
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