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Which of the following is true about price matching strategies? 1. consumers are often mislead because they believe they are charged the same price as competing firms 2. if one consumer finds a lower price at Firm A,then Firm B will match its price to Firm A's price 3. A risk involved with price matching strategies is that the firm may eventually sell itself out of business by charging a price below their cost of production 4.Often firms don't require proof of competitor's lower prices
not long ago an employee came into my office asking for a wage increase. i responded by asking what increase in
Which of the following would be considered an example of adverse selection?
Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market? Discuss.
Now assume that the firm is divided into two profit centers: the assembly division and the distribution division. The assembly division assembles the product at a total cost of 500 x Q and then transfers it to the distribution division that faces the..
From the scenario, suggest substantive ways in which Herb and Renee may use the information in the table in order to ascertain the profit maximizing level of output and price. Provide a rationale for your decision.
Why is organic food a positional good? What other ways do wealthy people have an advantage in avoiding pesticides? How does this relate to global inequality? How are organic foods produced, marketed, and sold in a capitalist society? Compare and cont..
Illustrate what was the value of the government expenditure multiplier. Suppose that investment declined by $40 to a level of $60. What will be the new level of equilibrium income.
Consider an economy that initially has a labor force of 2000 workers. Of these workers, 1500 are employed . The economy enters a recession. Employment falls by 5%, and in addition 0.4% of the labor force becomes discouraged at the prospect of finding..
Should the government fund education or should it be funded privately? Why? Will the opportunity costs of each type of funding be the same or will they differ? Explain. Use PPF theory and economic reasoning to support your arguments.
Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run average cost is constant; finally, at very high output,..
A woman with a taxable income of about $100,000 has a federal incremental tax rate of 26% and a provincial incremental tax rate of 12.29%. What is her combined incremental tax rate?
Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold’s doughnuts. It turns out that Donald’s preferences are quasilinear, represented by the utility function U(d, s) = ln d + s, where d is the number of dough..
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