Question: Each week a department store places a different item of
Each week, a department store places a different item of clothing on sale. Give an explanation based on price discrimination for why the store conducts such regular sales.
Relevant QuestionsIn most “normal” years (years in which the market has not been disrupted by Middle East wars), at each Organization of Petroleum Exporting Countries (OPEC) meeting, Saudi Arabia, the largest oil producer, argues that the ...What is the homogeneous- good duopoly’s Nash- Cournot equilibrium if the market demand function is Q = 1,000 – 1,000p and each firm’s marginal cost is $ 0.28 per unit?In 2008, cruise ship lines announced they were increasing prices from $ 7 to $ 9 per person per day because of increased fuel costs. According to one analyst, fuel costs for Carnival Corporation’s 84-ship fleet jumped $ ...Suppose that identical duopoly firms have constant marginal costs of $ 10 per unit. Firm 1 faces a demand function of q1 = 100 - 2p1 + p2, where q1 is Firm 1’ s output, p1 is Firm 1’ s price, and p2 is Firm 2’ s price. ...Two firms face the following profit matrix:Is it true that, given these profits, Firm 2 wants to match Firm 1’s price, but Firm 1 does not want to match Firm 2’s price? Does either firm have a dominant strategy? What is ...
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