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For each of the cases below, explain whether they represent a type of price discrimination or not and, if they do, which type.
(a) As you enter a store you see a sign saying "buy 2 get 1 free".
(b) A motel charges a higher price for a room to customers with dogs or cats than to customers with no pets.
(c) A cell phone provider offers corporate plans to businesses and individual plans to non-business customers.
Imagine that you are the chair of the Fed and see that Brexit and other events in Europe during this year will have a negative effect on Europe's economy: what policy would you carry out and why?
You want to borrow $20000. The lender offers you two interest rates to choose from. You can borrow for 8 years at either 10% per year simple interest or at 8.5% per year compounded monthly. The loan is to be paid in a lump sum. How much interest will..
A monopolist has 2 sets of customers distinguished by their demand functions p1=15-p1 and p2=25-2(q2)respectively. The total cost function of the firm is of the form C(Q)=5+3Q , where Q=q1+q2. Derive the aggregate demand function of the monopolist an..
Relate the ideas of Adam Smith to the moral justification of capitalism, given the logic of the theory of the competitive firm.
Consider the open economy model. Suppose that U.S. investors decide to invest more in Canada. What happens to the real interest rate, the real exchange rate, the net capital ouflow, and the net exports in Canada and in the U.S.?
Considering a machine which will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected saving from annual operating and maintenance costs are estimated to be $60,000.To expect a 15% rate of return..
Nora's Nicest Knick Knacks has produces a variety of products sold as souvenirs. She started out printing local sayings on tee-shirts, e.g., FDNY
q.the metropolitan book company assumed with certain that the ordering cost is 1200 per order as well as the inventory
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation price – the v..
q1. price fixing is a per se violation of the clayton antitrust act. from the materials in the library and the internet
Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs.
If make an initial investment of $5000 at 6% per month compounded monthly. How much would it be worth in 3 years?. Draw a cash flow diagram of what this would look like.
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