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Businesses can "price discriminate" by charging a higher price to buyers with more inelastic demand, and a lower price to buyers with more elastic demand. Supermarkets and department stores with coupons, for example. Coupon-clippers have more-elastic demand, so they're willing to spend time clipping coupons in order to get the lower price. People who are not eager to use coupons, on the other hand, have less-elastic demand and so they're OK with paying the higher non-discounted prices. In what other ways do you see "price-discrimination" play out in business? Does your company do it? Or, does your organization see it done by some of your suppliers?
You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following: There is a 70% chance that profits will increase by $100,000. There is a 20% chance that profits..
q1. explain how does an increase in transport costs change the gains from trade in melitzs 2003 model? are the effects
The Classical School of economic thinking is quite different from the Keynesian School. The adherents believe in different roles for government and have different ideas about what drives an economy and even what an economy is and how it functions. Ex..
Provide an example of digital disruption in the new knowledge based economy. What does Schumpeter mean by "creative destruction"?
Chapter 17's discussion of "Inflation Bias and Other Problems of Policy Formulation" suggests that there may not really be any such thing as a permanent fiscal expansion. What do you think?How would these considerations affect the exchange rate an..
Compare and contrast the industry structure, conduct and performance of firms in the following industries:
Give examples of price discrimination. In each case explain why the monopolist chooses to follow this business strategy.
The advent of personal computers also word processing software which eliminated the market for electric typewriters would be an example
For the closed-economy, one-period model, suppose that and where determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions.
This question may require some research. The US-Mexico Bracero Program was eventually opposed by:
ESPN pays the NFL $1.1 Billion per year for 8 yrs for the right to exclusively televise football. What is the NPV of the investment
Provide 3 examples of how economic globalization is inescapable or certain in this information society.
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