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
explain how inflation could reduce the efficiency with which prices allocate resources.

What is meant by the term managing expectations? Why is expectation management a significant part of the project manager’s job? What affects a customer’s expectations? We all h

Describe the characteristics of Monopolistic Competition

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

Assume Mr. Robinson deposits pounds 600 in currency at a bank. Later that day Ms. Volker borrows pounds 1200 from the similar bank. The money supply will have enhanced by pounds 60


How does economic system influence the development process? The development experience of free market or capitalist and command as socialist/communist countries is extremely d


QUESTION (a) Compare and contrast the two major transmission channels that characterizes the credit view. (b) Discuss which asset price channel of transmission of monetary p

The prevention of main swings in economic activity can be handled most simply by the household sector. Explain why?