The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Question

At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Answer 1

Question

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

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At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.

Answer 2

Question

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

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Answer 3

Question

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

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Answer 4

Question

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

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Answer 5

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Answer 6

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Answer 7

Chapter 16, Problem 4P

Sub-part

A

To determine

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Answer 8

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Answer 9

Sub-Part

B

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Answer 10

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Answer 11

Sub-Part

C

To determine

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

Answer 12

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Answer 13

Sub-Part

D

To determine

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Answer 14

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Answer 25

Ch. 16 - Prob. 1P Ch. 16 - Prob. 2P Ch. 16 - Prob. 3P Ch. 16 - Prob. 4P Ch. 16 - Prob. 5P

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

Solution Summary: The author explains the lags in the discretionary policy from the time the government determines that recession is there until a tax cut is available to reduce unemployment.

The lags in the discretionary policy from the time when the government determines that recession is there in economy until a tax cut is there in order to reduce unemployment and the reasons for which the long lags make discretionary policy ineffective.

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

The lags in the discretionary policy from the time the recession has started until the time until the time government has identified the severity and existence of recession and the reasons for which the long lags make discretionary policy ineffective.

The lags in the discretionary policy from the time there is an increase in the money supply to until its effects on the economy is realized and the reasons for which the long lags make discretionary policy ineffective.

Chapter 16 Solutions