What conditions are necessary to make each strategy successful in terms of increasing profits?

Explain why excise taxes are more effective at raising tax revenues when applied to Show more Essay question. Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher excise taxes? 2)Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits? Explain your answer. a. A local restaurant/bar offers discounted drinks during happy hour from 5 to 6 PM on weeknights. b. The price Company X charges for its ink cartridges is nearly as much as it charges for a printer. c. Packs of 5 T-shirts cost $10 while an individual T-shirt costs $4. d. Coupons for specials at a local grocery store can be downloaded from an online site. e. Computer and appliance manufacturers promote service contracts. f. Microsoft Office includes several programs in one package. 3)You hire a contractor to remodel your house. Identify three potential areas where asymmetric information and the principal-agent problem may be present. What are ways to mitigate the problems? Do you think having local government representatives inspect remodeling and building activities helps to reduce any of the problems? Explain your answers. 4) Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured? What is a typical form of government intervention to correct it? How effective is this type of intervention? Use the material from this course to support your answer. Show less

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Approximately 250 words