Evaluate the wisdom of the firms pricing policy

Assignment Help Business Economics

Reference no: EM13852617

Managerial Economics 6th. ed. Ch 3. Problem 6

Q. The Hanover Manufacturing Company believes that the demand curve for its product is

P =5 –Q

Where P is the price of its product (in dollars) and Q is the number of millions of units of its products sold per day. It is currently charging a price of $1 per unit for its product.

a. Evaluate the wisdom of the firm's pricing policy

b. A marketing specialist says that the pricing elasticity of demand for the firm's product.

Reference no: EM13852617

Questions Cloud

Market and then agrees to buy up any surplus that exists : Demand is given by : Qd=20-3P Supply is given by: Qs= 2 + 3p what is the cost to a government that sets a price floor of $4 in this market and then agrees to buy up any surplus that exists?

Describe the ideas on which the american revolution was base : From "Inventing the Republic," describe the ideas on which the American Revolution was based and how these ideas were put into the Articles of Confederation system.

Indifference map and budget constraint for goods : Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?

Shows the average annual growth rate in real gdp per capital : shows the average annual growth rate in real GDP per capita for Argentina

Evaluate the wisdom of the firms pricing policy : The Hanover Manufacturing Company believes that the demand curve for its product is-Evaluate the wisdom of the firm's pricing policy. A marketing specialist says that the pricing elasticity of demand for the firm's product.

Evaluate the importance of the material : Describe the content of the video, especially describing some key aspects of the video that you thought were especially interesting. Evaluate the importance of the material in understanding how these ancient cultures developed

Overview of the evolution of utilizing data analytics : Define data analytics in general and provide a brief overview of the evolution of utilizing data analytics in business.

Write paper on cyber technology and forensic psychology : Topic cyber technology and forensic psychology. Write a 1200 word paper representing an item or topic you find of interest or unusual

What prices is the demand for firms product price elastic : The Johnson Robot Company's marketing officials report to the company chief executive officer that the demand curve forth company’s robots in 2004 is-At what prices is the demand for the firm's product price elastic? If the firm wants to maximize its..

User Account

All Pages