Macy's Spent $1 Million to Set Up a Customer Surveillance

question 207

Short Answer

Macy's spent $1 million to set up a customer surveillance system and spends $80,000 a year to maintain it.What would be the AVC and ATC of the system if it watched (a)100,000 customers a year? (b)1 million customers a year?

Understand the dynamics of metapopulations and the concepts of source and sink populations.

Distinguish between r-strategist and K-strategist life history strategies.

Recognize the role of predation and food availability in shaping life history strategies.

Explain how individual behavioral traits can affect population dynamics.

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Definitions:

Dominant Strategy

In game theory, a strategy that is best for a player, regardless of the strategies chosen by other players.

Nash Equilibria

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of others remain unchanged.

Maximin Strategy

In decision-making and game theory, a strategy which maximizes the minimum gain that can be achieved, focusing on the most favorable outcome of the worst possible scenarios.

Entry-Deterrence

Strategies employed by existing firms in a market to prevent or discourage new competitors from entering the market.