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Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing. Scenario Tying Resale Price Maintenance Predatory Pricing Cubit is the only firm producing office cubicles. It costs $1,550 to produce a office cubicle, and Cubit sells each office cubicle for $2,150. After In Square, a new firm with the same costs as Cubit, enters the market for office cubicles, Cubit starts selling its office cubicles for a price of $800. Snackyville sells a wide variety of snacks to retail grocery stores. Snackyville recently released two new snacks: a popular trail mix and a much less popular granola bar. Snackyville requires grocery stores to buy 10 cases of the granola bar for every 100 cases of the trail mix ordered. Rhythm is a firm that produces mp3 players. Suppose Rhythm sells its mp3 players to retail stores for $162 each and requires those retailers to charge customers at least $172 for each mp3 player.
Your study partner is confused by upward-sloping short-run aggregate supply curve and vertical long-run aggregate supply curve. How would you explain why these slopes differ.
A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Blow..
the data contains the price of new and used taurus sedans. all prices for used cars are from 1995. for example a new
You have been appointed head of university parking enforcement. Your mission is to eliminate illegal parking. Car drivers are completely rational expected utility maximizes. They have utility functions given by u=x(1/2) where x is $ of consumption on..
What are the differences between the consumer price index (CPI) and the GDP deflator? Check all that apply.
Burning of fossil fuels emits carbon oxides into the atmosphere, which many scientists believe increase the rate at which the earth’s climate is warming. Legislate that within 5 years all automobile manufacturers must meet some sharply higher minimum..
Elucidate how much will the government spend in total. Elucidate how much does producer surplus increase.
Do you think that the AUD will fall as low as US 65C by the end of 2016? Justify your answer. What advantages do you think Australia will have in such a scenario? If the market rate is US 65C then what action could the Reserve Bank of Australia take..
You had chosen to take a trip during spring break if you had not gone you would either work a temporary job or studied for exams the opportunity cost of your trip.
Christine bought a BMW when she came to LA as a County Judge. The BMW was purchased by taking a loan that was to be paid off in 20 equal, quarterly payments. The interest rate on the loan was 12% per year with quarterly compounding. What was the amou..
Explain why purchasing power parity measures of income levels tend to show smaller differences between poor and rich country
John Smith expected income in period two is unchanged. Illustrate graphically explain how this job loss affects John's consumption in periods one and two.
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