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Question: Chad owns one of the only two veterinary practices in a small, secluded town located near the top of a mountain. Aside from these two, the closest vet is over 100 miles away. The other vet in Chad's town is Will, and Chad and Will have been lowering their prices to compete with each other. One day Chad calls Will and suggests they both raise their prices to turn more profits. Will agrees and now all of the citizens in their small town have no other option than to pay the high prices at either vet. This is an example of what kind of unethical pricing strategy? price virtues price misaligning price ethos price fixing
With the aid of clearly labeled diagrams, explain the difference between a change in quantity demanded and a change in demand?
Suppose an Entrant and an Incumbent are playing an entry game. The set-up is as follows: The Entrant first decides whether to enter. The Incumbent moves second. If the Entrant enters, the incumbent decides whether to fight or accommodate. How many Na..
Suppose a new tax is placed on the firms selling sugary drinks. What is the likely impact on prices of sugary drin
Explain when speculative attacks on a currency are likely to happen. List all the conditions that increase the likelihood of speculative attacks.
A monopsonist faces a labor supply curve given by Ls = −300 + 0.01ω , where ω is the annual salary. In general, the marginal cost of hiring additional labour for this firm is given by MFCL = 29,900 + 200L. If the firm’s labour demand curve is given b..
List five factors that affect the price of a European put option on a no dividend paying share.
How would implementation of a marginal cost pricing system for water impact total agricultural consumption and total urban consumption of water in California?
An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goo..
Which of the following conditions may make predatory pricing by incumbents rational?
In a certain kingdom, the demand function for rye bread was q = 381 − 3p and the supply function was q = 5 + 7p, where p is the price in zlotys and q is loaves of bread. The king made it illegal to sell rye bread for a price above 32 zlotys per loaf...
Calculate the yield to maturity for each bond. Calculate the expected annualized compound rate of return over the five years for each bond. Which bond offers the higher expected compound rate of return?
1. Managers do not have to worry about the NLRA if the workers they manage are not in a union. 2. Nonunion workers cannot go on strike.
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