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Problem suppose Frank's colleague Ralph retires and gives Frank his customers, all of whom have higher demand than Frank's existing customers. Frank's customers are now divided equally between a "High Demand" and "Low-Demand" clientele: Low-Demand customers: P=20-0.25 *Q ; High-Demand customers: P=22.50-0.25 *Q Assume that Frank wants to quote all of his customers the same terms. Among the choices offered below, which pricing strategy generates the most profits? a. Charge a flat price for each hour. b. Charge an up front fee for the first hour of work, and then offer as many hours as the customer wants at no additional charge. c. Charge an up front fee for the first hour of work, and then $10 per hour for all additional work. d. Charge an up front fee for the first hour of work, and then slightly more than $10 per hour for all additional hours of work. e. Cannot tell with the information given.
suppose that two players are playing the following game.nbsp player 1 can choose either top or bottom and player 2 can
how companies can be sufficiently flexible to adapt their supply chain operations to the technological change as required.
8. Julia's publisher sends her a $15,000 check every year that her book is in print. Suppose Julia's book is in print for five years and the inflation rate during that period is (-2) percent.
Is this consistent with utility maximization? How? For each basket, compare the cost of that basket vs. the cost of the other 2 baskets in total
1. Los Angeles is committed to raising $1 billion for a new stadium. It is considering a $1 surtax on all cab rides because most cab rides are by non-residents. Use supply and demand to evaluate the wisdom of such a tax.
Explain two estimation techniques you can use to estimate the amount that students spend on economics textbooks.
bull assume that you were recently hired by a marketing research company.bull you are assigned to a research team to
It has become popular in the media to blame banks, consumers, Wall Street, and government for the 2007-2009 economic crisis. As an economist, do you think it is
If the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account? If the bank is unable to use tying, what is the profit-maximizing price to charge for unlimited use of an ATM card?
What is the price at this output level? What are the monopolist's profit? Draw the demand curve, AC and MC curve on the graph.
What two policies could you use to reduce the total amount of emissions? Why do you think they each would work? What would the benefits of each action be?
Economists generally agree that U.S. antitrust policy is complex, changing over time, divided among several U.S. federal government agencies, and subject to frequent court reversals. The underlying question remains whether the U.S. needs more or less..
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