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Question: The idea that transactions in a market place work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price they are happy with the deal. There is no coercion. If the person really does not like the deal they simply walk away.
Given that background. Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than you will charge your smaller customers? She is arguing it is unethical. Explain why both customers will be satisfied with the deal. What kind of price discrimination is this type of segmentation and how will the plan increase revenue?
If a small country wants to protect its domestic producers from more efficient foreign competition by imposing an import tariff, will it come out ahead?
Big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an intial outlay of $95,000 and will generate net cash inflows of $16,000 per year for 9 years. What is the project's NP..
A long-run supply curve is flatter than a short-run supply curve because firms can enter and exit a market more easily in the long run than in the short run is it true or false.
The upper graph is for perfectly competitive firm. The lower graph is for the monoploist. Employ the graphs to answer the following questions: What is the firm's Total Revenue?
Examine the economics of the pharmaceutical industry. How has this regulatory change affected the market for pharmaceuticals?
Present these measurements graphically by either a stemplot or a histogram and explain the reason for your choice. Then brie?y discuss the main features of the distribution. In particular, what is your estimate of the density of the earth based on..
A firm production function is given by q(l,k) = l0.5·k0.5, where q is number of units of output produced, l the number of units of labor input used.
Say that the price of good X is Px =$1 ,the price of good Y is Py =$2 and income I=$18 .The marginal rate of substitution between X and Y (MRSyx) is constant at 3. Show the budget constraint and some representative indifference curves on a graph (rou..
Explain how a +0.5% adjustment in domestic interest rates would affect international investment flows. Determine if such a change would have a bigger impact on larger or smaller countries.
distinction between the short-run and long-run economic views
Suppose that the market for gnomes is yet to reach equilibrium, and that the current price and quantity in the market for gnomes.
The problem is belongs to Economics and it is clarify increasing the price of products in a monopolistically competitive market. Whether or not the increase in price can increase the profits have been discussed in the answer.
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