Game Theory - When McDonalds reduced it price on the Big Mac by 75% its customers also purchased fries and a soda. A newspaper reported that McDonald's was trying to revive its sales in the US with this promotion, however it did not. Within 2 weeks sales had fallen. Using game theory, what do you think messed up McDonald's plan?

Sunday sale restrictions - Some states have had laws restricting the sale of most goods on Sunday. Most consumers oppose these laws because they find Sunday afternoon a good time to shop, however retail trade associations support these laws. Using economics, give reasons for the trade assoc to support these laws.

Price matching policies - Suppose the 2 rival "Super Stores", Walmart and Target both adopt price matching policies. If people can find lower advertised prices on any items they sell, then they will match the lower prices. Explain why this policy might not be good news for consumers.

average variable, fixed, & total cost - The engineers at Tools, Inc have derived the expansion path shown in the attached spreadsheet. The price of labor is $100 per unit. 1.What price does Tools, Inc pay for capital? 2.If the owner decides to produce 180 units of output, how much labor and capital should be used in order to minimize total cost? 3.What is the total cost of producing 120,...

Future supply adjustments - The secretary -general of OPEC, stated that it would be easier for OPEC nations to make future supply adjustments to fix oil prices that are too high than it would be to rescue prices that are too low. From an economic stance, evaluate this analysis.