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Many Indian mothers weren't willing to make an investment in the company's educational toys because research showed they didn't perceive the play things as potential learning tools. But a shift in attitude began about two years ago, along with an increasing middle class able to purchase the toys. (Based on: Nicholas Casey, "Fisher-Price Game Plan: Pursue Toy Sales in Developing Markets," Wall Street Journal, May 29, 2008.)
Pick a real-life rm that bundles products in some way. Describe how this pricing function is a form of price discrimination; in other words, why do some consumers effectively "pay more" for a particular product than other consumers do? Why is it a..
Elucidate how would the different forces come together to create a convergence between the interests of stockholders and managers.
The economy has seen unemployment rate raise from 6% to 9.5%, the inflation rate decrease from 2.8% to 1.2%, and there has been a 24% decline in consumer spending and a 45% decline in investment spending in the same time period.
How do you think the check tax affected the currency-deposit ratio and use the model of the money supply under fractional reserve banking to discuss how this tax affected the money supply.
Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
Illustrate what extent are these definitions of economics and happiness similar. To what extent are they different.
Assume you currently earn taxable income of $100,000 per year. You are subject to an MTR of 50%. Currently, your ATR is 35%. Calculate your annual tax.
Elucidate how might raise the chance that the employee would retire earlier as compared with the situation where the employee had to pay for his own health insurance.
The amount that the government raises from the inflation rate tax is ΔM. (ΔM = change in money stock or the printing of more money or the change in the amount of money today from yesterday). Write ΔM as a fraction of nominal GDP.
Explain how might these regulations be thought of as being a negative technological change.
How does the Federal Reserve increase or decrease the money supply and what might cause the Fed to change the supply?
Consider a price ceiling imposed on a monopoly that is set below competitive price. Make a diagram showing the monopoly equilibrium in this case.
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