Explain, with reference to second-degree price discrimination, how a firm can increase its profits by making its product less attractive.
Derive an algebraic expression for the intertemporal budget constraint using c1 and c2 as period 1 and 2 consumption levels, p1 and p2 as period 1 and 2 price levels, and ρ as the real interest rate Is it better to be a borrower or a lender when ρ falls? Use indifference curve analysis to […]