FINAL EXAM MATERIAL Lecture notes: see Blackboard Tutorial problem sets: see Blackboard Book chapters: Varian‚ 8th ed. 1 The market 2 Budget constraint 3 Preferences 4 Utility 5 Choice 6 Demand 8 Slutsky equation (no algebra required) 14 Consumer’s surplus (no algebra required) 15 Market demand 18 Technology 19 Profits maximisation 20 Cost minimisation 16 Equilibrium 31 Exchange and Welfare Theorems (no algebra required)
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Second-Degree Price Discrimination Example In class on Monday and Tuesday (9/17-18) we went through the second degree price discrimination example involving a company selling airline tickets to tourists and businesspeople. The following slide‚ included in your handouts‚ laid out the example: [pic] As the solutions to the problem set explain‚ the way to approach these problems is to think through possible pricing strategies the company might want to use‚ such as selling to all consumers‚ selling
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In a capitalist economy‚ all the central problems are solved with the help of price mechanism. In such an economy‚ no individual or a firm deliberately tries to solve the central problems; all economic activities operate automatically and there is no conflict anywhere. The basic reason for all this is that price mechanism brings about co-ordination in various sectors of economy and in various economic activities. The important characteristic of such a system is that it is automatic and there
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The Four P’s of Marketing The four P’s of marketing are product‚ price‚ place and promotion. Product is a good or a service that is intended for the consumers based upon their wants or needs. Price is the set price on the product. The price will depend on the targeted consumer‚ the economy‚ and the location. Place is merely the location in which the company decides to distribute the product. Promotion is the way the company decides to advertise their product to the public. (Griffin‚ & Ebert
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NEGOCIATION ANALYSIS EXERCISE ON BATNAS‚ RESERVATION PRICES‚ AND ZOPAS A PRIMER ON BATNAS‚ RESERVATION PRICES‚ AND ZOPAS This introduction talks about Negotiation concepts. BATNA (Best Alternative to Negotiated Agreement) is the last proposal that a person can do before exiting the negotiation. You have to prepare your BATNA before the negotiation to keep in mind what is your alternative solution if the agreement cannot be reach. Then‚ RESERVATION PRICES is the point beyond which a negotiator is ready
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Essay—Price comparison portals PriceChecker: What’s Your Price? PriceChecker.my is a web-based price comparison engine designed to help customers compare prices of goods---top grocery brands---from various major retailers and across popular hypermarkets in Malaysia such as Tesco‚ Carrefour‚ Mydin‚ and Giant. The site compares five big hypermarkets‚ 16 brands and manufacturers‚ and over 32 products. The product categories include cereal‚ bread‚ cooking oil‚ fresh milk‚ soft drinks‚ and even baby
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Suppose we are in…. The Land of All Assets The end result of our time spent in the Land of All Assets was that an investor in the Mean-Variance World would complete the following process to construct her or his optimal portfolio: 1) The investor would first estimate the various inputs needed to build the Old Efficient Frontier. The inputs that the investor needs to estimate are the expected returns and the variances of all the risky assets‚ and all of the covariance terms across all of the risky
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Companies take a competitor orientation when they strategize “according to the premise that they should measure themselves primarily against their competition.” (Grewal & Levy‚ 2014‚ p. 430)‚ For Example‚ Delta is one company that changes prices to meet those of the competition. Delta‚ is a major American airline with its headquarters and largest hub at Hartsfield Jackson Atlanta International Airport in Atlanta‚ Georgia. Delta was founded May 30‚ 1924. Delta airlines is a company that offers a service
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Iron Ore Price Bubble Those who anticipated price bubbles made huge profits. But the key word is ANTECIPATE Therefore‚ the relevant question is “What is the NEXT price bubble?” If you dream of profiting from the next price bubble‚ you should take a closer look at iron ore‚ which is the mineral used to make steel After 3 years working in metals and mining for Goldman Sacks‚ I realized some characteristics that lead to price bubble in commodities I will give one example of metals that are
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ECON1102 SUMMER SCHOOL 2012/2013 SUBMISSION QUESTION 1: DUE: FRIDAY 21 DECEMBER‚ 2012 BY 5PM. (i) Explain the concept of the consumer price index (CPI) and explain how it is measured. What is the latest CPI figures in Australia (Sept 2012) and what were the main factors influencing the CPI movements in this quarter. (ii) Is the CPI an accurate measure of inflation? Explain the importance of inflation when calculating the real interest rate. (iii) What are the economic
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