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Sarita signed up with Netflix for a fixed fee of $16.99 per month. For this fee, she can receive up to 3 DVDs at a time in the mail and exchange each DVD........... Sarita signed up with Netflix for a fixed fee of $16.99 per month. For this fee, she can receive up to 3 DVDs at a time in the mail and exchange each DVD as often as she likes. She also receives unlimited instant access to movies being streamed from Netflix to her computer or TV. During the average month in 2010, Sarita received and watched 6 movies sent to her through the mail and she watched an additional 13 movies which were streamed to her computer.What is the average cost of a movie to Sarita? What is the marginal cost of an additional movie?
Given a 15% raise in a good's price and a 25% decrease in quantity demanded for good by consumer, which of the following types of elasticity best describes the demand curve for the consumer?
Explain how banks and individuals can use covered interest arbitrage to protect themselves when they make international financial investments.
A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.
Consider the marginal cost for a product like Microsoft Window 7. How does the marginal cost for a product like this differ from a product like automobiles? What relevance might there be to this difference?
Given the global economy, increase of emerging economic superpowers such as China and India, and challenges to remaining competitive in a global world, do you think that American federalism remains relevant?
Calculate the elasticity of demand and elasticity of supply at each price change in the market for financial calculators
What is the short-run profit-maximizing policy of a monopolistically competitive firm and how is the long-run equilibrium of monopolistic competition like that of perfect competition? also give example.
Describe and discuss why characteristics of the labor markets should result in the similar wage rate for all jobs requiring the similar level of abilities and skills?
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
An interesting example of strategic behavior comes from the 1997 article regarding Microsoft's investment in Apple (New Straits Times, 1997). The article is included in Required Readings list.
Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).
Think that the following data for a simultaneous move game. If you advertise and your rival advertises, you each earn $5 million in profits.
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