Economics Answers

Explain why a monopolist can increase profits by practising price discrimination
compared with using a single price to maximize profits? What are the different
kinds of price discrimination? What are the necessary conditions required for a
monopolist to be able to practice each kind? Provide one example of each of the
different types of price discrimination. You may use graphs to illustrate.

Many service industries such as restaurants, night clubs, movie theatres and hair
dressers experience much higher demand during weekends compared to week
days. Explain a pricing strategy which would increase profits compared to a
single price profit maximizing strategy. Be sure to include a graph which
explains your demand, marginal revenue, and marginal cost. (20 marks)

You have been asked by your boss to report on the expected profits from a single
price strategy compared with a two-part pricing strategy. The estimated demand
for the firm’s product is:
Qd = 400 - 0.2P.
Per unit cost is estimated as constant at $1,000.00. Provide a report which
explains the profits from a single price profit maximizing strategy with a twopart
profit maximizing strategy involving a fixed fee plus a per unit fee. Assume
that total fixed cost is $30,000. What is the optimal fixed fee? Why does the twopart
pricing policy increase total profits? (20 marks)

suppose Mr.Y deposits AED 100.000 into a one-year certificate of deposit at 5% interest.the central bank sets the reserve ratio for the banks at 10%.
a.illustrate how the banks create money with the hep of given information.(show first 5 steps)
b.calculate the total money creation in the economy with the help of formula.

How does the Michigan Consumer Sentiment Index affect the bond market and foreign exchange?

Fast-food stores often charge higher prices for their products in high-crime areas than they charge in low-crime areas. Is this an act of price discrimination? Why or why not?

Explain the calculation and interpretation of the cost of capital. In your response, consider how this cost impacts a health care managers decision on expansion of services, etc.

an open macroeconomic model for a hypothetical economy is represented as follows

Y=Co+Io+Go+Xo-Mo, M=mo+m1yd, C=co+c1yd, T=tY and Yd=Y-T

a) Show that equal change in tax ans government expenditure are expansionary to the economy

b) Derive the equilibrium level of savings in the economy

You are given the following information about the commodity and money markets of a closed economy without government intervention.
The Commodity Market
Consumption Function: C=50+2/5Y
Investment Function: I=790-21r

The Money Market
Precautionary and Transactions demand for money : MDT=1/6Y
Speculative demand for money: MDS=1200-18r

Required
Determine the equilibrium levels of income and interest rate for this economy
using a well labelled diagram, illustrate the equilibrium condition in part (i) above

Hello. I read one book and I don't know one economists' term.

Could you explain this economic term: "disutility of labor" in one example from practice?

Thanks and best wishes.