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If the elasticity of demand by students for students for MSOffice is 5, while the elasticity of demand by business professional is 2, and the marginal cost of producing another bundle of the office suite is $50, what are the profit mazimizing prices of the student bundle versus the professional bundle, assuming they are in fact identical versions.
b) If the markets are not segmented, waht kind of arbitrage could take place?
c) How could MS Office prevent this type of arbitrage?Think of at least two ways!
d)Are these techniques to enforce price discrimination legal and should they be?
Construct the diffusion index from month 2 to 3. This problem, we have three leading indicators and the diffusion index from month 1 to 2 is 66.7 (=2/3) because two indicators move up and one moves down
Textbook publishers have traditionally manufactured both United States and international editions of most leading textbooks. The United States version typically sells at a higher value than international edition.
Choose a United States firm with global operations. Discuss the company's activities outside the United States
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Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?
The table lists the maximum feasible hourly rates of the production of pastries if no sandwiches are produced and the maximum feasible hourly rates of the production of sandwiches if no pastries are produced.
What are the difficulties in measuring this within one country and making comparisons of the standard of living of people in different countries?
Gillette's shareholders, Chairman and CEO James Kilts indicated, "Despite several new product launches, Gillette's advertising-to-sales declined dramatically . . . to 5.5 percent last year. Gillette's advertising spending, in fact, is one of the l..
What would be the long run price and quantity for this firm in a competitive market and in the long run how many firms are in the industry?
what was an example of the significant run-up in oil prices from 2005-2010. an aggregate demand shock that increased the price level and increased the rate of growth of real GDP.
What market structure best characterizes the market in which universities compete? How does this structure influence the university's pricing strategy?
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