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Suppose you are employed to set prices for a local car dealership. The dealership currently uses cost-plus pricing. Will you leave this pricing technique in place? Why or why not?
Each firm can monitor the other's price very closely and can respond instantly
Machine A was purchased last year for $20,000 and had an estimated MV of $2,000 at the end of its six-year life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next five years. A salesman for another company is of..
"Burger King Gets Grilled" (USA Today, August 27, 2014, B1). Define and discuss usage of the HHI index and C4 index and what are two of their limitations (which would be very relevant in this case). Calculate "pseudo" HHI and C4 indices for worldwide..
Suppose a company has a gasoline vehicle, but is considering purchasing a new hybrid vehicle that would cost $20,000, have operating costs of $1,200 in the first year, and have a salvage value of $8,000 at the end of the first year. Find the economic..
Elucidate which following is true in market of a monopoly
Are they oligopoly or monopolistic competitions? Can you describe in detail why they are what they are? What role does Mutual interdependence play in these? Evaluate whether these industries have “enough” competition or if consumers would benefit fro..
It is virtually impossible to implement an organizational network that effectively supports the core business activities without creating.
Other channels of monetary policy. Consider this quote:” Monetary policy does not work simply through lowering interest rates. Sometimes it can directly affect particular credit markets in the economy.” Can you give an example of actions that the Fed..
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros) What is the real exchange rate? In which country is the automobile less expensive?
Is the drug industry a good illustration of the market theories described in this chapter? Explain. How should the relations between drug and human life/health affect your views on drug industry monopoly profits? Explain.
Illustrate what are the monopolist's profit-maximizing price and total output.
q1. firms with costs c q2 36 face demand p 24 - nq and behave under the rules of monopolistic competition. compute
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