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Question: Back Pedal is a bike-rental shop that rents bicycles, helmets, and other gear by the day.
a. Back Pedal offers an optional helmet rental for $10/day with the rental of a bicycle. To his surprise, the store manager has noticed that cycling accidents are higher among customers who rent helmets than those who do not. Explain this phenomenon using economic concepts. Assume that customers who do not rent helmets also do not own helmets.
b. Back Pedal is considering offering helmets for free with a bike rental. Explain how this new policy will affect the issues you identified in part a.
Comment briefly on the similarity of Netflix's pricing strategy with the Pricing Strategy for substitute products that you learned in Chapter 12. Has Netflix been successful with this strategy?
Describe several ways to develop and measure quality. What would be your key metrics and why? Answer should be 2-3 paragraphs. Atleast 400 words.
cemex and holcim are two cement manufacturers in durham. they produce cement and sell it into a competitive world
Examine prior government policies and legislation that might have exacerbated the impact of the shocks.
Using the first table and the second table (the "Avg. columns) calculate the income elasticity for Coke assuming income doubles and the price is $1.00 per can (again, use the mid-point formula).
questionthe task is to interpret the following article in the light of your understanding of supply and demand. where
If a perfectly competitive firm raises its price above the prevailing market rate, how much of its sales might it lose? Why? Can a competitive firm ever raise.
A firm’s Marginal Revenue curve (in class we called this also Marginal Value) is given by w=1200-2L, where w stands for the wage and L for the quantity of labor. The labor supply curve is given as w=L.
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization.
questionyou have exams in economics and chemistry coming up and five hours available for studying. the following table
Describe the intervention and detail its history. Analyze the arguments for government intervention as opposed to arguments for market-based solutions.
The speed of your automobile has a huge effect on fuel consumption. Traveling at 65 miles per hour (mph) instead of 55 mph can consume almost 20% more fuel.
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