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Suppose you decide to keep working after the three hour commute is introduced. Relative to part (a), do you expect your leisure hours to increase, decrease, or stay the same? Explain with reference to income and substitution effects.
Suppose the Federal Reserve Bank adopts expansionary monetary policy. Using the graph of supply and demand for the market of short term Treasury securities, show graphically and briefly explain what happens to the price of short term treasury securit..
What does pricing say about your business? Who is the customer and what effect does pricing have on them?
We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..
Graph the demand curve, and give some verbal interpretation. Compute the intercept and slope of the demand curve. Use the calculus formula to calculate the point elasticity at the price of $4.00. Give a verbal interpretation of this elasticity. Is th..
Draw supply and demand curves for bagels. Assuming that bagels and muffins are substitute goods, draw what would happen
You expect to receive a payment of $600 one year from now. Answer the following questions and show your calculations:
When a firm tries to maximize profit by segmenting the market into two groups and charging each group a different price, which group should be facing a lower price? Bundling is more profitable than traditional pricing ...
You work for a drug manufacturing company and holds a patent on Hair Grow, the worlds most famous effective drug for restoring hair. Your job is to analyze the pricing and investment decisions facing the firm. Your marketing group estimates that Hair..
Discuss a instance in your life in which you used game theory to earn or save money. Did you realize you were implementing game theory in the situation?
Ocean World, a foreign corporation, operates Ocean World Adventure Park in the Dominican Republic (DR). It contracted to buy 12 dolphins from Japan for delivery in the DR. The DR denied a permit to import the dolphins. Ocean World sued various defend..
What asymetric Information can contribute to the onset of both a currency and financial crisis.
Proponents of a Basic Income (or Negative Income Tax) argue that it is a superior method of addressing income inequality than the Minimum Wage. discuss how, in a parallel universe with NO minimum wage but a Basic Income of approximately 2/3 of minimu..
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