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In the 1990s, IBM added a chip to their LaserPrinter line and sold it as the LaserPrinter E. The sole function of the chip was to slow the speed of the LaserPrinter by 50%. Why would IBM incur an additional cost to reduce the functionality of their product?
Your response should apply economic principles (e.g., comparative advantage, opportunity cost, cost-benefit principle) to answering one of the above questions. Your answer does not need to be correct in that it fully explains the question. Instead focus on creating an intelligent hypothesis that could potentially be tested and refined. Also avoid using technical jargon for the sake of being technical. Your response should be able to be read and understood by an intelligent individual with no training in economics.
Each assignment will also highlight a different tool in the economist's toolkit. You do not need to specifically reference or use this tool in your submission, but it may be helpful to think about how the tool relates to the puzzle. This assignment's economic tool: Price Discrimination
Financial Recession: There has been a rise in mortgage defaults leading to an increase in the risk premium in the economy. (increase f).
Draw a supply-and-demand digram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for computers.
Employ the following information on hypothetical short-run production function to answer questions a-d. Compute the marginal and average variable product of each unit of labor input. Hint: plot your Units of labor and Units of Output vertically.
Wages are said to be sticky when they do not adjust fast enough to reflect changing conditions of demand and supply.
suppose that the trade pattern of a country is that it exports foodstuffs and imports fancy sports equipment. can you
Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space.
Analysis of Development Theories
Assume that a firm's analysis of its balance condition shows the following: PL = $10, PK= $100, MPL = 30, and MPK = 290. As a decision maker in this firm.
Should we treat capital investments differently or all the same? More specifically should we encourage certain types of capital investments? Why? What are some of the ramifications of our decisions?
Economists argue that appropriate corrective taxes or tradable pollution rights will result in efficient pollution reduction. how do these approaches target the firms that should undertake bigger reductions
Stan Moneymaker has been shopping for a new car. He is interested in a certain 4-cylinder sedan that averages 28 miles per gallon.
the one product economy which produces and sells only personal computers pcs expects that it can sell 500 more or 12500
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