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Q1. A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%. Explain how much change in the number of units sold can the company afford and still be no worse off?
Q2. You are the manager of a monopoly. A typical customer's inverse demand function for your firm's product is P = 100 - 20Q and your cost function is C(Q) = 20Q.
a. Determine the optimal two-part pricing strategy.
b. Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price?
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
You read in a business magazine that computer firms are reaping high profits. Assume that the computer market is perfectly competitive.
An open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders..
Adding four or more flights to existing routes, it will have to add two pilots also flight attendants.
A physician's office expenses increase 10 percent so she decides to raise the price of office visits by that much. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice reven..
Illustrate what will happen to the price of bonds also to money holding if the Fed changes the interest rate as a result of a decrease in the money supply.
Explain how has the recent natural disaster in Japan influenced the provider of Toyota automobiles.
What would happen to the position of the demand curve for dental services if patients had to wait even longer for an appointment with a dentist.
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School
Elucidate how free market features could be introduced to help improve the problem. As your answer also include a discussion of the risks of introducing market mechanisms.
Consider a consumer with $10 to spend on these 2 goods where the price of apples is always $2 every.
In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.
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