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Q1. DVDs also DVD players are no longer niche products; 31 million players have been sold in the United States. Sony sells both DVD players also DVDs. Illustrate what should be Sony's approach to pricing? Illustrate what difference will it make to Sony pricing if clients have now become dissimilar?
Q2. Assume to a firm's only variable input is labor. When 50 workers are utilized the average product of labor is 50 also the marginal cost of the 50th worker is 75. The wage rate is $80 also the total cost of the fixed input is $500.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Illustrate what total amount of output will firm A produce in a competitive market. Which output level would be efficient.
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
If each economy specialized in its comparative advantage, what range of prices would bacon trade at in terms of eggs.
Derive Chenyu's consumption function in terms of her annual income Y and initial wealth W according to the life-cycle model.
Illustrate what is the marginal income for each 10,000 increase in the quantity sold. Illustrate what recording fee would you advise Johnny to demand from the record organization.
If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.
Suppose that increased international trade makes product markets more competitivein U.S., would we expect to observe an upward slope on the WS curve or the PS curve
the industry that this claim were untrue, what critical questions could you ask about the HHI used for the study
If supply at every price is reduced by five gallons, what will the new equilibrium price be.
Avoid having developed economies regress to a Smoot-Hawley type of isolationism or protectionism to avoid job losses in import-competing sectors.
calculate the price elasticity of demand for each product and compare with your teammates' elasticities.
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