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A local video store estimates that their average customer's demand per year is P = 3.5 - .05Q (all customers are identical), and knows that the marginal cost of each rental is $0.5. How much should the store charge for an annual membership (M) and how much for each rental (R) if it uses an optimal two-part pricing strategy?A. M = $4.5 and R = $2B. M = $5 and R = $1C. M = $9 and R = $0.5D. M = $12.25 and R = $0
Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.
Suppose the dollar-pound rate equals $0.5 per pound. According the purchasing power parity theory, what will happen to the dollar’s exchange rate under each of the following scenarios?
The county municipal council owns a toll bridge that costs the county $250,000 every year to operate and $130,000 a year to maintain. The facility brings in revenue of $500,000 per year.
according to moodys obligations rated as aaa are judged to be of the highest quality with minimal credit risk.a. what
You are hungry. Very hungry. You come across one of several restaurants in a given area. As you look through the menu posted outside the door, you see that the prices are about double of what you expected.
Suppose that there is a temporary, but significant, increase in oil prices in an economy with an upward-sloping sras curve. if policymakers wish to prevent the equilibrium price level from changing in response to the oil price increase, should they i..
The HRB Corporation is the world’s only manufacturer of air filters for Zamboni engines. Last year, HRB charged $20 per filter and sold 1 million of them, and it paid all of its production workers $10 per hour. This year, something happened at HRB he..
Does the presence of online auction sites, such as eBay, make it easier or harder for traditional retailers and wholesalers to engage in profitable price discrimination? Explain.
As in PS1, consider a consumer with preferences over newspapers (x) and books (y) that can be represented by the quasilinear utility function U(x; y) = x + 2 p y.
Pick either: Quantity Supplied Supply Curve, Supply Schedule, or Law of Supply for each. A graphical object showing the relationship between the price of a good and the amount that sellers are willing and able to supply at various prices.
Calculate the market demand for strawberries and plot it on a graph. On the same graph plot the supply function using the data in column A. What are the equilibrium price and equilibrium quantity?
Do you think governments should step in and help an economy move to potential or are "markets" capable of fixing themselves? Carefully consider the impact of falling prices.
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