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Cell phone data plans are most useful when used with a smartphone, and smartphones are most useful when used with a data plan. As the price of data plans falls, the demand for smartphones will:
If the seller cannot discriminate, but must charge the same price p1 = p2 = p to each group, what will be her profit-maximizing price? Which, if any, consumer group benefits from price discrimination?
Using the rule of 70, if a person lived to be 70 years old in a country with an average annual growth rate in real GDP per capita of 2 percent, the average income during this person's lifetime would increase by approximate
Use a diagram to show the consumer surplus , producer surplus and total surplus of the market for groceries in this small town. Now suppose these small supermarkets successfully form a cartel which behaves like a monopoly, How does this cartel affect..
use the shifts of appropriate curves to show why the combination of rising incomes plus price ceilings produced shortages and lines. Finally, show what happened when price controls were removed.
A machine costs $50,000, and increases revenues by $18,000 per year. However, O&M costs increase by $4,000 per year. The machine lasts 6 years and your MARR is 7% annual rate compounded annually. What is the Present Worth (or Net Present Value) and s..
elling price of another product Y in dollars per unit. The inverse delivery curve. Conclude whether X also Y are substitutes or complements.
Suppose stocks A, B and C have the same expected return and standard devieation. The correlations of return are given as follows Corr(A,B)=0.7, Corr(B,C)=-0.3 and Corr(A,C)=0.2.Find the weights on each of these stocks.
React to the topic by summarizing a significant chapter and/or readings and an application of that chapter material to the subject. Adam Smith and Thomas Malthus had entirely unmistakable perspectives about the eventual fate of capitalism. Condense e..
Employees bear the cost and earn the returns on investments in general training and employers bear the cost and earn the return on specific training. Is this statement true, false, or uncertain? Give an economic justification for your answer.
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..
Production Possibility Frintier and Production Possibility Curve (PPC) are the same thing. Suppose that Jeffrey can produce a maximum of 50 units of corn, 20 units of grapes, or some linear combination of these extremes. Likewise, Sarah can produce a..
Spivey just won the Powerball lottery! The $25,000,000 jackpot will be paid in 10 annual instalments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the p..
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