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In June 2013, Microsoft announced that its new Xbox One video game console would have a price of $499. Sony then announced that its new PlayStation 4 video game console would have a price of $399. An article on the event where Microsoft introduced the new console noted that the Microsoft spokesman "started by showing off features like live-television technology and the ability to video-chat through its Skype service." The article goes on to say that not until nearly half way through the presentation did the Microsoft spokesman mention the new games the console could play.
a. Why in announcing a new video game console would Microsoft focus its presentation on features of the console other than its ability to play games?
b. Was it an advantage to Sony that Microsoft announced the price of the Xbox One before Sony announced the price of the PlayStation 4? Briefly explain.
lets assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant
Other things being equal, during a period when the federal government issues more Treasury securities to borrow funds,
a firm has two prodcuts and two customers. customer 1 is willing to pay 9 for product a and 4 for product b. customer
Green Futures operates a solar panel power generation facility in Florida. The current field generates 10 million kilowatt hours per year, however every year production drops off by 1 million kilowatt hours, as dust and droppings accumulate on the pa..
Variable costs have no impact on marginal costs in short run and marginal product is the change in revenue associated with the selling of one more unit of output.
Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.
Ice cream and pie if these are goods that you like, but if you eat too much of either, you get sick of them. If you are sick of a good, eating more of it lowers you utility.
Consider the same animation cel auction as in problem 1. If instead you decide to hold a Vickrey Auction, what will person 2's bid be, if he is behaving optimally?
Pat tells you that Melon is thinking about leasing a parcel of land to build a shopping center. Melon would own and operate the shopping center and generate revenue by renting space to retailers. Pat would like you to do some work on the project. Spe..
soppose that in one year an american worker can produce 100 shirts or 20 computers while a chinese workers can produce
In the hope of high returns, venture capitalists provide funds to finance new (startup) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits.
Suppose that the allocatively efficient output level in long-run equilibrium is 210 meals. Is the deadweight loss for this firm greater than or less than $60?
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