Explain this pricing behaviour

Assignment Help Microeconomics
Reference no: EM13697404

Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behaviour.

Reference no: EM13697404

Questions Cloud

Economics in the current news : Take some time to think about the ways in which your learning in this class relates to the real world. Has the knowledge you gained been valuable in helping you understand or evaluate events or policies? Are there any current events in the news that ..
Use the mundell-fleming model to predict : Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of hte following shocks.
Main reason firms may exit market-costs of production : Which of the following is an implicit cost to a firm that produces shoes? The main reason firms may exit a market is because of: The costs of production do NOT include. If the cross-price elasticity between ketchup and hamburgers is ?1.5, a 2 percent..
International economics play in development-global market : Define what the Federal Reserve Bank is, how is it managed? Who runs the Fed and what role does it place in the economy? What role does International Economics play in development and global markets?
Explain this pricing behaviour : Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behaviour.
Deduce the demand functions-homothetic preferences : Homothetic Preferences. The preferences represented by >= are homothetic if for any two bundles X and Y such that X >= Y, we have tX >= tY for all t > 0. Solve the consumer's problem and deduce the demand functions.
What will be the ultimate cost to the city of the bonds : A municipality wants to sell 30 year bonds to pay for a new WWTP. Investors want a market rate of return on their money of 3.5% or higher for the tax free bonds. The City needs to raise $32.5m today.
Hypothesis of supplier induced demand : Is the existence of higher fees in areas with a larger physician/patient ratio sufficient evidence to support the hypothesis of supplier induced demand?
Alcohol generates a negative externality in consumption : Suppose alcohol generates a negative externality in consumption. If so, then

Reviews

Write a Review

Microeconomics Questions & Answers

  17 assume a certain firm in a competitive market is

17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

  What is the value of consumer surplus

Assume that the demand curve is given by the following: p=100 and the supply curve is given by Q=p-25. If the government puts in place a tax of 10 that must be paid by the buyer the deadweight loss that results is equal to:

  Determine the specific details about fictitious company

Determine the specific details about this fictitious company in order to conduct an environmental scan of this company.

  How many apartments are constructed

If both the agency and the board are right about demand and supply, what is the free-market price? What is the change in city population if the agency sets a maximum average monthly rent of $100 and all those who cannot find an apartment leave the ci..

  What is the customer price index today

When Joe started his job at the Laundromat five years ago, his wage was $5.00 an hour. Today his wage is $8.50 an hour. If Joe started his job in the base year, and his real wage is the same as when he started, what is the customer Price Index today?

  Draw her budget constraint-label the intercepts

Presume an individual lives two periods. In period 1 she works full time and makes $100. In period 2 she enters partial retirement and makes $20. She can borrow and save at the constant, risk-free interest rate r. Draw her budget constraint. Label th..

  Should federal government cut federal aid to states to

should the federal government cut federal aid to the states to reduce the massive fiscal deficit? by so doing what

  Drive on a toll-road vs. a free-access interstate

How do costs play into your everyday life? For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate? Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)?

  Consider the market for coffee at university the market

consider the market for coffee at university. the market supply is given byqs -20 pswhere qs is the quantity supplied

  Describe how business risks vary between traditional tax

as the rate of innovation increases companies face expanding productservice lines shorter product and service

  The level of total consumption in equilibrium

What is the difference between the optimal level of total consumption and the level of total consumption in equilibrium?

  Extension of the specific-factors model

Think about an extension of the specific-factors model, in which, in addition to their wage, labour also earns some part of the rental on specific factor in their industry,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd