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Consider a monopolist movie producer that produces two movies (A and B). The producer wants to sell these movies to two theaters (1 and 2). Theater 1's valuations for movie A is $4 and that of movie B is $1. Theater 2 serves a different demographic and its valuation for movie A is $3 and movie B is $2. Suppose price discrimination is not possible.
What is the revenue maximizing pricing strategy for the movie producer
Determine the nominal rate you would have to be paid on a 15-year municipal bond to be indifferent between it and a 15-year corporate bond if the corporate bond has a nominal 6.28% yield. Assume you are in a 39.6% federal and 8.7% state tax bracket a..
No durable goods spending= $400million, durable goods spending = $300 million, new residential housing spending = $200 million, and spending on services = $500 million. What does consumption equal?
Comment on: ”Some researchers believe sports participation might shape various personality traits, other researchers believe we participate in sports because of our personality type”. In essence, this is the nature - nurture debate. How would this af..
Assume tuition cost $6,142 (per semester) in 2007 and $7562 in 2021. Price index was 207.34 in 2007 and 226 in 2012. What is the 2007 tuition fee in 2012? What is the growth rate of inflation-adjusted tuition fee from 2007 to 2012? What is the inflat..
Protectionist trade policies are often enacted with the political intention of strengthening exports, and hence GDP. Examples of protectionist trade policies include quotas and import taxes. What is the impact of the protectionist trade policy on the..
Although cost leadership is perhaps less relevant for firms pursuing product differentiation, costs are not totally irrelevant. What advice about costs would you give a firm pursuing a product-differentiation strategy? What is the role of costs in a..
What is your expected winnings when you participate in the free-throw challenge for one game?
The initial cost of a pickup truck is $11,311 and will have a salvage value of $4,266 after five years. Maintenance is estimated to be a uniform gradient amount of $177 per year, with zero dollar for first year maintenance. The operation cost is esti..
As distinguished from sole proprietorships and partnerships, why is the corporation type of legal organization so valuable to a firm? Is the corporation type of legal form a right or is it a privilege?
Clear Water Co. has a down-hole well auger that was purchased 3 years ago for $45,000. It has been depreciated over the three years as a MACRS-GDS 5-year property. It has an estimating remaining life of 7 years. O&M costs are $20,000 per year. Clearl..
1) A random sample of size 122 was taken from a population with a population mean 29 and a population standard deviation 4.
Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency?
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