Network of n retailers
Course:- Business Management
Reference No.:- EM131253940

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Management

A monopoly manufacturer sells its product through a network of n retailers, to each of whom it has assigned an exclusive territory. Within their territory, the retailers are themselves monopolies. Sales of each retailer are q = (a - bp)s1/2where p is the retail price, s is the level of service provided by the retailers, and a and b are parameters that are identical for all retailers. The retailers choose both p and s so as to maximize their profits. Each unit of services provided costs them $1 and the manufacturer charges them a wholesale price of m for each unit of the product, but otherwise they have no costs. What level of p and s do they choose? What level of m does the manufacturer choose if its unit costs of production are constant at c?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Management) Materials
Evaluating Feasibility The concept of a feasibility study is central to viability, the “worth to the effort” ratio, and return on investment (ROI). What needs to be taken into
Using examples, fully explain the following three (3) primary explanations for companies to want a controlling interest: internalization theory, appropriability theory, and
(a) What are the characteristics of the life of a manager and how do they influence management decision making? (b) Describe in detail one "Multi Attribute Utility (MAU)" dec
1. Search for two advertising Ads that are directed towards two different segments of the population. 2. Your Ad segment can be any of the following segments(must pick one for
Also suppose the inventory (units) satisfies where the sales rate depends on the buying reaction to price (elasticity) , the normal rate of consumption c and an input functi
Four functions of management are planning, organizing, leading, and controlling. Based on what you have learned about the four functions of management and how they are inter
Ask a companion or relative to finish the Instant/Lasting Zone diagram, concentrating on their utilization of hardware. Subsequent to evaluating their finished diagram, comp
While there is a dribble of Back-to-the-Landers reclaiming former industrial farmland it may take something drastic to reverse the urbanization trend in any meaningful way.