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1. Explain why a hotel manager should understand the theory of peak-load pricing.
2. In markets for electricity, it is now believed that generation is an activity that should be deregulated and governed by competition. In many cases the price of electricity is determined through a power pool. The power pool operator takes bids for supply and dispatches generation-lowest bidders first-until supply equals demand. The bid of the marginal supplier determines the pool price. Suppose that electricity generation has constant returns to scale, that capacity costs are sunk, and that output in the short-run is limited by capacity. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient. How does your analysis change if there are small economies of scale?
Compute an approximation using blocks of 10 wolves and compute an exact value by finding the total area under person 1's demand curve.
state at least one economic benefit to increased international trade. why might a corporation prefer to obtain
Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years
Modern economics, neoclassical economics in particular, often relies on probability. Review this article for more information on the connection between probability and economics.
Build your cost model but calculate labor, equipment depreciation, material, and facility costs separately. Then provide a total cost summary.
explain dont just mention what happens to the federal funds rate the borrowed monetary base i.e. discount loans and the
james pizzo is president of a firm that is the industry price leader that is it sets the price and the other firms sell
a muffler company advertises that you will receive a rebate if it takes longer than 28 minutes to replace your muffler.
Draw the demand curve for your product (market share vs. price). If a segment is indifferent between buying and not buying, assume they will buy.
If they both televise many games, they split and perhaps over saturate the market and both receive $5M from television revenue. If they both limit appearances on television, they take advantage of the high demand for their limited product
the oil marketthe world oil market has been through tremendous changes in the past decades resulting in significant
Draw indifference curves to represent following types of customer preferences. Marie likes milk, but neither likes nor dislikes coffee. Marie likes coffee with milk but she always wants 1 cup of coffee with half a cup of milk.
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