Assume that Netflix can charge European users a different price from US users, but that the costs of providing programming to each user increases as the total number of users increases. Specifically, the U.S. has demand:

??? = 22 − (3/2) ???

And Europe has demand:

?? = 12 − ??

And Netflix’s cost function is: ? = 30 + 5(??? + ?? ) + (1/2) (??? + ??) 2

Resulting in marginal cost: ?? = 5 + (??? + ??) Identify the optimal price(s), quantities of customers, and resulting profits for this third-degree price discriminating firm.

Your US based company exports drendels to the rest of the world. The world market for drendles is highly competitive (so competitive that changes in production in the US do not impact the world price). The current price of a drendle is €100/drendle. Company's cost fix is C(q) =50,000+50q+0.02q² in US dollars. If the exchange rate is $1.20/€ how much profit in US dollars does your firm make?

Suggest one specific government measure that might be used to tackle each of the following:

1. A decrease in a country’s labour force participation rate
2. An increase in the number of long-term unemployed
3. An increase in Nova Scotia’s unemployment rate
4. An increase in the number of coal miners out of work
5. An increase in the unemployment rate of young workers

Discuss the limitations of GDP as a measurement tool. Why do we still use it if is so flawed?

Suppose a city imposes a price floor on hamburgers sold at restaurants.

(a) On a diagram show the resulting loss of total social surplus if rationing is efficient.

(b) Explain how the loss of total surplus would change if rationing were inefficient.

Assume households and firms become optimistic about the economy and increase autonomous consumption and investment. Please explain how a central bank should respond to this event? Will the response differ if the central banks’ mandate imposes a strict inflation target? Explain your answer in words and with a graph based on the AS-AD model.
a)

Netflix customers in Australia could soon be facing steeper monthly charges. The popular streaming service on Monday confirmed that it recently tested higher subscription prices for new customers in Australia. The company—which has nearly 100 million global subscribers and expanded to Australia in 2015—has reportedly tested raising prices for new subscribers by as much as three Australian dollars (AU). Netflix’s test resulted in some Australian customers seeing price increases for the streaming service’s Basic plan (going from AU$8.99 to AU$9.99 per month), while Netflix’s Standard plan increased AU$2 to AU$13.99 and the Premium plan increased AU$3 to AU$17.99 per month, according to The Australian. Netflix confirmed the tests, but emphasized that it has not yet formally announced any permanent price increases. “We continuously test new things at Netflix and these tests typically vary in length of time,” the company said in a statement. “In this case, we are testing slightly different price points to better understand how consumers value Netflix. Not everyone will see this test and we may not ever offer it generally.”

Addendum from the lecturer: They increased the prices to $9.99, $13.99 and $17.99 respectively from 1st July 2017. And in 2019 they increased the premium plan to $19.99, while leaving the other two prices constant.

Discuss why you think Netflix conducted this test and what you think they found from that test based on their later decisions.

Refer in particular to concepts from what price elasticity of demand is and how it is calculated and used, its relationship with revenue, and relevant determinants of price elasticity of demand.

1. 1.
   1. What are the four tools of monetary policy?
   2. Draw a diagram of the Federal Funds market and show changes as a result of the following. (draw separate diagrams for each of these cases).
      1. Fed lowers the discount rate
      2. Fed raises the interest rate on excess reserves
      3. Fed raises the required reserve ratio
      4. The demand for federal funds shifts to the right
      5. The demand for federal funds shifts to the left
   3. What type of defensive open market operations has to be undertaken in the above cases (iv) and (v).

1. A plant has a capacity of 4,100 hydraulic pumps per month. The fixed cost is $504,000 per month. The variable cost is 4166 per pump, and the sales price is $328 per pump (assume that sales equal output volume). What is the breakeven point in number of pumps per month? What percentage reduction will occur in the breakeven point if fixed costs reduced by 18% and unit variable cost by 6%?

In stock market crash, What were the major differences between the 1920s and the 1930s? How did the end of WWI affect the U.S. economy? Explain the relationship between Liberty Bonds, “Investing Culture”, Margin Buying, and the rapid appreciation of stock values in the 1920s? Why did the major bankers meet at J.P Morgan’s office across the street from the NYSE? What did they subsequently do? How did the “Liquidity Crisis” compound an even greater contraction in GDP after stock prices collapsed? What means did Roosevelt implement to help stabilize stock markets immediately and long-term? What effects did the Great Depression have internationally? Do you see any parallels today?

What were the main reasons for the United States, Canada, and Mexico to sign on to the original NAFTA? After more than 20 years, has NAFTA delivered the benefits expected? How might NAFTA be improved to the benefit of all three members’ countries?

I need some topics I could potentially write a 20 page research paper about. It has to be specifically about some sort of problem within the U.S. Economy or Economic Policy. I need a potential research question, it has to be something specific please.

1. What forces or events may cause a rise or a drop in any demand curve?

2. What forces or events may cause a rise or a drop in any supply curve?

3. What will happen to the demand, supply, price and quantity of the M&M chocolate over the next 2 years? Why?