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Soft selling and adverse selection:
If trying to sell a new accounting system that will reduce cost by 10%. Instead of pricing the product you give the cost as 50% of their cost savings. Describe the information assymetry and adverse selection problem and why soft selling is successful.
Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..
Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
Suppose we randomly poll 500 Americans and ask them whether they believe that the parents are involved. What is the distribution of the sample mean.
If income elasticities are equal for all goods, then all Mashallian demand functions must be downward sloping.
Now, suppose that following the supply and demand changes in (a), a substitute good goes up in price, and your costs of production increase. What new decisions will you make regarding production levels and pricing for your Widget facility?
A company estimates its annual expenses, Y, in dollars from Y = 0.235X^2+7X+4 and annual revenue in dollars from 0.215X ^2+ 16X where X is annual units sold. Find the value of X that gives maximum profit. Round to nearest integer
A firm's production function is qi = .2*Ki.2Li.4. The wage rate in this area is w = $15, and the cost of capital is r = .05. Find the firm's short run cost function, if Ki is fixed at $100,000. If the good is exported around the world at a price of $..
Describe the difference between the short run and long run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run?
Suppose me also my roommate started a bagel delivery service on campus. List some of our fixed costs also express why they are fixed.
Compare the additional income Microsoft makes as it moves from 20 million to 40 million copies of Vista with the additional income it makes as it moves from 40 million to 60 million copies of Vista.
A company has to decide weather to lease or buy a crane for 20 Years, please calculate both seperatly and show which one is the better option.
the incentive of entrepreneurs to develop substitutes for the product supplied by the firms? Are competitive pressures present in markets with high barriers to entry? Discuss
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