User Account

All Pages

Global crossing introduce the new technology

Assignment Help Business Management
Reference no: EM131273992

Problem 1:

Global Crossing is a major provider of fiber optic cable capacity - having a 70% market share. It is in possession of a technology that has the capability of expanding capacity (output) of its product by 20% without any increase in Global Crossing's cost. The overall market elasticity of demand for such capacity is - 0.6.

a) What will happen to the market price should Global Crossing introduce the new technology - assuming other competitors do not react to Global Crossing's action? Be specific and show your work.

b) What is the elasticity of demand facing Global Crossing - assuming other competitors do not react to Global Crossing's action? Show your work.

c) Is it profitable for the company to introduce the new technology and expand output of capacity? Explain.

d) If Global Crossing had only 20% of the market, would it have a different incentive than in part c)? Explain.

Reference no: EM131273992

Questions Cloud

Discuss the costs and benefits for latvia : 1. Discuss the costs and benefits for Latvia following the transitioning from a planned to a market economy. 2. Critically evaluate the economic imbalances that Latvia's economy experienced ad recommended the policy options that could have been ado..
What are the responsibilities of top management and leaders : What are the responsibilities of top management and leaders in relation to corporate governance and strategic planning? What are the benefits of strategic management?
Discuss the costs and benefits for latvia : 1. Discuss the costs and benefits for Latvia following the transitioning from a planned to a market economy. 2. Critically evaluate the economic imbalances that Latvia's economy experienced ad recommended the policy options that could have been ad..
Describe the concept of herd immunity : Describe the concept of "herd immunity." Next briefly describe the basics of the " anti-vaccination" movement.
Global crossing introduce the new technology : What will happen to the market price should Global Crossing introduce the new technology - assuming other competitors do not react to Global Crossing's action? Be specific and show your work.
Which types of consumers are most likely to respond : Which types of consumers are most likely to respond to a direct marketer? A freestanding, interactive electronic computer terminal that displays products and related information on a video screen is a(n).
Down the level of unemployment : 1. Based on the extract above, discuss the caused and the types of unemployment in South Africa. 2. Evaluate how the following changes may affect the rate of unemployment in South Africa?
Why might employees be interested in them : What are 3 initial works, on the market, you might suggest the international company consider for acquisition or loan, and how much should the company budget for these works?
Design a clamping circuit to minimize voltage overshoot : ECE534 Project - ECE511: Design Project - You will demonstrate the design to the TAs by taking them through the schematic and key simulation results. Details will be provided on the timing of this demonstration.

Reviews

Write a Review

Business Management Questions & Answers

  Find an article describing an experience

Search the Cybrary or other online resource and find an article describing an experience of either: (1) a US company or division that conducts business in a foreign country

  Explain why was the new baggage handling system vital

1. Explain why was the new baggage handling system so important to United? 2. Explain what appears to be the single greatest risk in the decision to build DIA?

  Better risk adjusted return

You are an analyst comparing the performance of two portfolio managers using the Sharpe Ratio measurement. Manager A shows a return of 20% with a standard deviation of 16%. Manager B shows a return of 13% with a standard deviation of 7%. If the ri..

  Advertisements and claims

Illustrate your position with examples from ads. Second, do you think that there is anything morally objectionable about this practice?

  How do firms manage to mislead investors

In part, many corporate scandals center on misleading or inaccurate financial statements. Also, the financial crisis in 2007-08 period included corporate failures in the financial sector and enormous losses for investors. How do firms manage to mi..

  Examine the duties and responsibilities of a hr specialist

Examine the duties and responsibilities of a HR specialist. Determine the contributions that someone in this position makes to an organization. Support your position

  Organization design elementsdescribe and contrast

organization design elementsdescribe and contrast organization design elements and using your experience what is the

  What is southern tours eager to pay today to acquire

What is Southern Tours eager to pay today to acquire Holiday Vacations? Southern Tours is considering obtaining Holiday Vacations

  Developing a proposal for customer needsto answer the

developing a proposal for customer needsto answer the following questions perform an internet search for sample

  Acquisition or self development

Research or analyze past diversification case through acquisition or self development. What is the background or rational? Does it make sense? Why? What was the predicted result on company performance?

  Explain how the change impacts other values

A value that can be changed, such as possible down payment amounts for a car, in order to see explain how the change impacts other values?

  Importance of strategic business training

Faculty Model-which is headed by a director and staffed with experts in particular topics and customer Model-which trains for just one specific division or function of the company

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd