Pricing strategy, Business Economics

You own a small retail business that produces a product that is slightly different from that of your many competitors. Your firm is currently making an economic profit. The absolute value of the elasticity of demand for your product at the current price is less than one (i.e., inelastic).

a) What pricing strategy would you suggest, and why?

b) What would you expect the long-run future of your business to be, and why? Use graphs to explain your answer.

c) What long-run strategy would you suggest for your firm, and why? Use a graph to explain your answer.

Posted Date: 2/19/2013 5:19:37 AM | Location : United States







Related Discussions:- Pricing strategy, Assignment Help, Ask Question on Pricing strategy, Get Answer, Expert's Help, Pricing strategy Discussions

Write discussion on Pricing strategy
Your posts are moderated
Related Questions
What is the function of World Trade Organisation in the promotion of development? The World Trade Organization (WTO) is international association dealing along with the global

The manager of a movie production company is thinking of investing in new graphics computers for a price of $325,000. The computers are expected to have a useful life of 3 years.

Question 1: What are the main predictions of the Capital Asset Pricing Model (CAPM)? Discuss the role and significance of the assumptions needed to obtain the predictions.

Explain about theories and models linked to development. • There is no one agreed theory of development. All models, as Rostow, provide an insight in one or two dimensions of t

How much power or influence does a U.S. President versus a company CEO actually have in a free enterprise system, when it comes to producing jobs or the decision to manufacture co

Demand uncertainty, particularly in the fast fashion industry, is a significant factor. For this reason, María, the Supply Chain Manager of The Fast Fashion Group (FFG) has decided

Suppose that EBV makes a $6m Series A investment in Newco for 1m shares at $6 per share. One year later, Newco has fallen on hard times, and receives a $6m Series B financing from

An agent has a utility function over goods 1 and 2 of the form U = x c 1 x d 2 where c is your 1- digit number and d is your minimum number. The agent's income is equal to you

Is ownership of change important for development? Successful polices depend onto countries owning the process. When the economic reforms required for development are considere

ITunes is rapidly dominating the global market for music sale. Assume that the download  price for Dance artist Calvin Harris's single "Feel So Close" is $1.19 and the number of  d