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Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Alba and Gavigan set up their site so families can choose what kinds of non-toxic, all-natural products they'd like to use and get them in a bundle. Families can choose all kinds of products from food to hygiene necessities and cleaning supplies. Suppose they are thinking of expanding their business into five domestic markets: Phoenix, Dallas, Chicago, New York, and Atlanta. Assume their primary goal of business is to maximize economic profits, although they want to do business honestly.Show all your calculations and process. Describe your answer for each question in three- to five-complete sentences.
a. You are a business adviser for Alba and Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
b. Are they likely to make economic profits initially? Can they continue to make economic profits in the long term? Why or why not? Discuss.
c. What advice would you give to Alba and Gavigan to help them make more profit in the long term?
in oligopoly each firm is acutely aware of the production and marketing decisions of all competitors and carefully
Assume an airline flying on the New York - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance purchase), and discount (14 day advance purchase) travelers.
given equationtc18q3-1.5q211.5qp37-0.01qdemandp10.01qsupplyquestions1. what would be the long run price and quantity
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you have the following information on the marginal benefit and marginal cost of abating emissions of a given
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
a why and how might education have externality effects?b in our discussion of education and wages we assumed that
You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago (patents in the U.S. are valid for 20 years). Despite strong sales ($125 million last year) and a low marginal cost of producing the product ($..
JG Asset Services is recommending that you invest $1,500 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?
Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In second paragraph
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A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages
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