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Disneyland has two possibilities for pricing rides at its theme parks: (1) Set MR = MC for each ride and charge the maximum price consumers will bear. (2) Charge an admission fee to the theme park but allow unlimited rides for free. Using graphs, show which pricing scheme is more profitable for Disneyland.
Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 250 -5Q, and the firm’s cost function is C(Q) = 6Q. Determine the firm’s equilibrium price and corresponding profits.
You will receive in class feedback that should then be used to develop and inform your end of semester 3000 word research proposal.
For each scenario, calculate equilibrium price and quantity, total consumer surplus and total producer surplus.
The president of the World Bank has asked you to calculate the average per capita GDP growth in Bulgaria from 1970 to 2010. In 1970, per capita GDP was $3,600 and in 2010 it was $13,500. Your answer would be:
explaining the expected short-term impacts on firms in any one of the following three industries in terms of product sales; operating costs; revenues or economic profits.
As conditions in short term financial markets improved by summer of 2009 the Fed closed down its lending under these programs. However, throughout the next 4 years the Fed increased substantially its purchases of longer term mortgage backed securitie..
The relevant cost index was 120 4 years ago. The cost then for a gas station tank of 1,500 gallons was $40,000. We want to now purchase one size 4,500 gallons but the purchased price cost index is now 300. Assuming a power law size model with exponen..
Roughly speaking, a merger between two firms is legal:
China applies state capitalism which manipulates market activities to achieve political goals. Describe the political and legal systems in China and their effect on MNEs (multinational enterprise) doing business in China.
In your opinion, discuss when it makes sense to forego purchasing car insurance (assuming the state did not require it). In your answer, use moral hazard and risk aversion to describe your decision.
It’s that season again! You have engaged in a market study to categorize your patients’ willingness to pay for their flu shot into 8 equal sized groups: $40, $35, $30, $25, $20, $15, $10, $5). All of your costs are fixed except labor and materials, w..
Define what is any arrangement that enables buyers and sellers to get information and do business with each other?
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