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Under what conditions should a manager use each of the following rules/options for pricing decisions: (a) Maximax Rule; (b) Maximin Rule; (c) Minimax Regret Rule; and (d) Equal Probability Rule? Also address the potential pitfalls of using each rule.
What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is:Q = 3000 - 50 P. Is the firm going to achieve its profit goal? Explain.
compute the price elasticity of demand between successive points. Which price maximizes publisher's revenues. Calculate and explain.
Explain how firm could employ computed elasticities in its pricing and marketing decisions. Which of se variables have statistically significant relationships with sales.
Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum
If you borrowed $24,000 today and you have to pay them back in five equal payments over 10 years (one payment every 2 years). With 8% interest rate compounded annually, what is the amount of each payment? (C=?)
A firm has developed a new product for which it has a registered trademark.
q1. what is meant by average propensity to consume? suppose that 1000 out of 10000 disposable income is saved. what is
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is su..
All this is known to both players. Suppose both players behave according to the level-k thinking model discussed in class. Two players simultaneously guess a number.
The purpose of this assignment is to become familiar with the terms import and export, and then describe advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.
Elucidate how do you compute the effective price reduction resulting from a coupon promotion.
Suppose that each worker in the Home country can produce three cars or two TVs. Assume that Home has four workers. Graph the production possibilities frontier for the Home country. What is the no-trade relative price of cars at Home?
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