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at level of output q up to 600 per day, find out the TVC MC and AC in short run
Following information shows that a firm offering a good at different prices to groups of consumers with different levels of willingness to pay.
Inverse Demand for movies: P1 = 20 – 4Q1
Inverse Demand for students: P2 = 10 – Q2
MC = 4
(a) What price and quantity and maximizes profits if the firm charges each market?
(b) Demonstrate that charging different prices for the two groups results in higher profits than charging the same price for everyone.
(c) Graph the demand curves, the marginal revenue curves, the marginal cost
curve and highlight the equilibrium.
Indicate under which item of the current account each of the following transactions is
recorded and whether it will increase or decrease the balance on the current account.
a. Capeson, a Chadilien exporting company, exports fruit to the Middle East.
what are examples of trades off
If Qd=20,000-3P Qs=15,000+2P. Calculate equilibrium price and quantity.
Calculate price elasticity of supply using point elasticity method. Also interpret the result.
Identify what method of customer profiling is described. Write DEM for Demographics, PSYCH for Psychographics and TECH for Technographics.
____________ 1. Lifestyle classifications talk about what people value most in their lives.
____________ 2. Sports regulars may be looking for more sophisticated equipment.
____________ 3. It defines the customer’s motivations, perceptions, preferences, and lifestyle.
____________ 4. Social classes and reference groups often dictate what is acceptable or unacceptable behavior.
____________ 5. Cultural beliefs of people such as the food they eat, how they save and how they spend, and their levels of conservatism or progressiveness.
Identify what method of customer profiling is described. Write DEM for Demographics, PSYCH for Psychographics and TECH for Technographics.
____________ 1. Income levels determine the purchasing power of customers.
____________ 2. Physiological needs and wants refer to the customer’s personal likes and dislikes and include the satisfaction of thirst, hunger, and shelter.
____________ 3. Different persons may actually see different things in very different ways.
____________ 4. Areas of residence and environmental surroundings, oftentimes, define and limit the choices available to customers.
____________ 5. Classifies people according to their level of expertise in using a product or a service.
Indicate under which item of the current account each of the following transactions is recorded and whether it will increase or decrease the balance on the current account.
a. Capeson, a Chadilien exporting company, exports fruit to the Middle East. (2 Marks)
b. Jones and Kelly, a Chadilien engineering firm, hires German engineers to help with the construction of new stadiums. (2 Marks)
c. You receive a dividend (a part of the profit) because you own some shares in Amazon which is based in the US.
Explain the meaning of cost of capital and its relevance in a net present value (NPV) analysis.
1) What is its unemployment rate?
2) Now suppose 4,000 of the people looking for work get discouraged and give up their searches. What happens to the unemployment rate?
3) Would you interpret this as good news for the economy of bad news? Explain.
