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Question: Explain why 2nd-degree price discrimination is called 'self-selection mechanism'. You should show the process by drawing two different downward-sloping demand curves. You don't need to explain 'sacrificing steategy'.
A night-club owner has both student and adult consumers. The demand for drinks by a typical student is QS=24-4P. The demand for drinks by a typical adult is QA=8-P. There are equal numbers of students and adults. The marginal cost of each drink is $2..
Consider the market for vegetable fiber. World price is $9.00 per pound. Unlimited quantities are available for import in the US at that price. The US domestic supply is: If there are no tariffs, quotas or other trade restrictions in the US what will..
Patrick chooses to use his time ‘free-time’: (a) working out or (b) reading. Patrick currently has 20 hours a week to allocate to these two activities. It takes Patrick 1.5 hour to work out and .5 hours to read. Patrick enjoys both activities, but he..
What item did you choose and what price did you use? What year in the past did you use? Report the price of the item in the past. Also report the average
Describe a situation where maximizing "expected utility" and maximizing "expected value" are equivalent.
Its loan is for $3 million, and it will be paid off in 15 equal annual payments. If the interest rate is 10%, how much is each payment?
The Cobb-Douglas production function is given by: Y = AK^(α)L^(1−α) where 0
Suppose that we are testing whether five population means are equal to each other. We would normally use ANOVA for that, but suppose that we carry out separate hypothesis tests in which we compare the five means to each other, two at a time. Using a ..
In your answer, compare and contrast the ability of each firm to manage their pricing strategy and prevent price arbitrage.
You are employed as an economic consultant to the regional planning office of a large metropolitan area, and your task is to estimate the demand for hospital services in the area. Use this information to project the impact of the following changes on..
How has what happened in your life affected who you are today?
Suppose that all wages also prices in an economy are indexed to increase. Explain there can still be an increase tax.
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