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Suppose your utility function for fruit (F) and chocolates (C) is U(F,C) = F + 4C. If you reduce your chocolate consumption by 2 units, how much do you have to increase your fruit consumption in order to maintain the same utility level?
a) 2 units
b) 4 units
c) 6 units
d) 8 units
Firm A is concerned about the reactions of buyers to the price it sets for its product. Firm B is concerned about the reactions of buyers and its few rivals to the price it sets for its product. Firm C has no control over the price at which its produ..
Big pharmaceutical companies are oligopolies and as such their strategic decisions are influenced by the rival's actions. Describe the pros and cons of the oligopolistic firms in the healthcare sectors
Why do Senior citizens pay less than everyone else for admission to a movie, but pay the same as everyone else for movie-popcorn?
Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits? Explain your answer.
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
The economys business cycles are not well synchronized with any of the world's largest economies and policymakers.
Suppose that the price of beer rose by 7.8%, the price of pizza rose by 1.2%, and the price of chocolate did not rise at all. Also, suppose that beer represents 46 percent of the economy and pizza represents 42 percent. Chocolate is the rest of the e..
You are to write a paper, convincing the president of the company of your conclusion and explaining what the company's pricing strategy
If overseas producers can sell in the domestic market Illustrate what is the equilibrium price. Illustrate what is the equilibrium quantity.
Suppose that macroeconomics forecasters predict that economy will be expanding in near future. How might managers use this information.
Panther Hall is a college dorm with 100 residents who each have the identical demand function for a pleasant community room, given by the equation MB = 1000 – 9.95Q. The marginal cost of maintaining the community room is MC = 1500 + 5Q, where Q = squ..
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