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In the case of the car wash, suppose that the owner wants to segment his market in terms of the willingness to pay of her customers. She thinks that segmenting the market between car owners who would pay more than $12 per car cash wash and those who would pay less than $12 is reasonable. To implement this policy she will advertise that some day of the week there will be a discount.
a. How much should she charge per car wash to the two market segments she has created so contribution is maximized?
b. Has the customers’ surplus increased or decreased? How much has the contribution increased for the car wash owner?
The treasurer of a firm noted tha many invoices were received with the following terms of payment: "2%- days, net 30 days." Thus, if the bill is paid within 10 days of its date, he could deduct 2%. Or the full amount would be due 30 days from the inv..
What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.
Consider the following situation for the US economy and answer the following questions. Suppose there are 10 million people living in the US. in 2013, Obama has to spend $8 per capita in wages to government employees and $2 per capita in government e..
Measure the income of Samantha on the vertical axis and the income of Oscar on the horizontal axis. Draw several of Sam’s indifference curves under the following circumstances. Sam doesn’t care about Oscar’s income, but the higher her own income is, ..
If you want the portfolio to have an expected return equal to that of the market, explain how much should you invest in the risk-free security.
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
You are a manager in charge of monitoring cash flow at a company that makes photography equipment. Traditional photography equipment comprises 40 percent of your revenues, which grow about 2 percent annually. If the own price elasticity of demand for..
Discuss the summary below and include your thoughts, opinions, questions, observations, disagreements, etc. relating to the summary. The Relation between Economic Freedom and Political Freedom. There is an intimate connection between politics and eco..
For each firm within an industry, T = X(X - 1)2 + 25X; where T is the long-run cost of the firm, and X is the firm's level of output. For the industry as a whole, Y = 34 - p; where Y is total consumer demand for the industry's product, and p is the p..
And within a few months, they reduced the amount of scrap to $7,000 worth [per year]." Was this necessarily an economically efficient move? Explain your answer.
q1. when corporate income taxes are assumed to exist modigliani miller and the traditional theorists agree that capital
In the medical care sector, the decisions of what services should be produced, how they should be produced, how they should be distributed, and how to allow for growth and innovation must be made. Please answer the following question: Who should rece..
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