ESSENTIALS OF ECONOMICS
4th Edition
ISBN: 9781464188466
Author: KRUGMAN
Publisher: Norton, W. W. & Company, Inc.
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Chapter 20, Problem 8P
To determine
(a)
A French importer buys a case of California wine for $500 -Impact on current account of balance of payment.
To determine
(b)
An American who works for a French company deposits her payback on a paris bank, into her San Francisco bank-Impact on current account of balance of payment.
To determine
(c)
An American buys a bond from a Japanese company for $10000-Impact on current account of balance of payment.
To determine
(d)
An American charity sends $100000 to Africa to help local residents buy food after a harvest shortfall - Impact on current account of balance of payment.
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Students have asked these similar questions
In the context of investment risk, what does "diversification" mean?
A) Spreading investments across various assets to reduce riskB) Investing in a single asset to maximize returnsC) Increasing investment in high-risk assetsD) Reducing the number of investments to focus on high-performing ones
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%
Chapter 20 Solutions
ESSENTIALS OF ECONOMICS
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