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P.P T.V station is considering selling promotional dvds. It can have the DVDs produced by Firm A and Firm B. Firm A will charge a set up fee of $1200 plus $2.00 for each DVD, while Firm B has no set up fee and will charge $4.00 for each DVD. The station estimates its demand for DVDs to be: Q=1,600-200P; P is price ($) and Q is number of DVDs.
1. Suppose the station decides to give away the DVDs, how many DVDs should it order and from which supplier?
2. Assume the station wants to maximize its profit, illustrate what price should it charge and how many DVDs should it order from each supplier?
Elucidate why from an economic point of view towing a car illegally parked rather than just ticketing it provides a better incentive.
Price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus.
For what range of interest rates could these firms use trigger strategies to support the collusive level of advertising.
As control variables, Quinn's data also includes income the individual earned in the month the data was collected, and the amount that it rained in the month the data was collected.
Identify also converse at least two arguments which support trade restrictions also two Once modest trade restrictions.
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage payments interest.
China's entry into the World Trade Organization (WTO) is likely to create more competition between local also foreign firms also provide China greater access to the marketplace for export.
Among different market structures, which one do you believe provides the highest possible return for a new company as well as why.
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to calculate the percentage increase in real GDP per person from 1987 to 2005.
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