Charges lower prices because of its lower overheads

Assignment Help Business Economics
Reference no: EM131518166

Mercedes-Benz of San Francisco advertises that it has been owned and operated by the same family in the same location for fifty years. On that basis it makes two claims: first that it has lower overheads than other dealers in the area because it has owned the land for fifty years; and secondly that it charges lower prices because of its lower overheads.

Discuss the logic of these claims.

Reference no: EM131518166

Questions Cloud

Develop the tools necessary to educate project participants : Develop the tools necessary to educate project participants and to evaluate project outcomes (surveys, questionnaires, teaching materials, PowerPoint slides, et
Trends in schooling continue : Comment on the following assertion: 'If the trends in schooling continue, at some point in the future, everyone will have a college degree
List three approaches to measuring gdp : List three approaches to measuring GDP, explain how they work, and why they give the same answer, if there is no measurement error.
In what circumstances can an arbitrator be removed : In what circumstances can an arbitrator be removed? Can Mr Po be removed? In giving your answer be sure to refer to the relevant articles of the Model Law
Charges lower prices because of its lower overheads : On that basis it makes two claims: first that it has lower overheads than other dealers in the area because it has owned the land for fifty years
What was the major effect of wwii on the economy : Describe the development of the war between 1939 and 1941. What was the situation in the war when the U.S. enters? In the Pacific? In Europe?
Estimate a security market line : In this assignment, you are to estimate a security market line. You have current information about beta and expected annual return.
Estimate is difference between the annual inflation rates : What would you estimate is the difference between the annual inflation rates of the United States and Japan?
What steps can the bank take against mohan : In event of default by Rakesh, what steps can the bank take against Mohan. Which Forum he should approach for filing a claim against the Builder

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate what would happen if an outside agency

Elucidate Illustrate what would happen if an outside agency Concluded the prices eBay could charge.

  Other consumer goods open stores in outlet malls

Many manufacturers of clothing and other consumer goods open stores in outlet malls where they charge much lower prices than they charge in their own stores located within cities. Outlet malls are typically located a considerable distance from major ..

  Why is technology such an important part of the labor market

Why is technology such an important part of the labor market? Do you think technology makes workers more or less productive and how does it relate to their wages?

  About the including tax and insurance

An engineering student bought a car at a local used lot. Including tax and insurance, the total price was $3000. He is to pay for the car in 12 equal monthly payments, beginning with the first payment immediately.

  Equilibrium buyers and sellers price with no sales tax

Calculate the Equilibrium buyers and sellers price with no sales tax, and then with 20% sales tax. Assume: S(P^-)=50 + 3P^- D(P^+)=370-3P^+

  What is the dominant strategy

Consider the case of two identical firms, each with a cost function C(yi)=yi^2/1+10yi where i = 1 or 2. These are the only two firms in the market for this good. The market demand is P = -2Q +280. Write the information found in (a) – (c) into a norma..

  Parts must be produced each year to just break even

How many parts must be produced each year to just break even? (Use AEC equation)

  Comparative advantage in the production of fruit

Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket of fruit Board feet of timber Haiti 10 5 Dominican Republic 30 10 a. Whi..

  What is consumer surplus

What is consumer surplus?

  Business typically spends more on rent-seeking activities

Which of the following explains why big business typically spends more on rent-seeking activities than consumers?

  Describe how the equilibrium changes

Suppose that the demand curve for wheat is Q = 100 − 10p and the supply curve is Q = 10p. The government imposes a price ceiling of p = 3. Describe how the equilibrium changes. What effect does this price ceiling have on consumer surplus, producer su..

  Invest in public secondary and public higher education

It is well-known (from chapter 10 in the text that is not covered by this test) that college graduates tend to migrate across state lines much more than high school graduates do. What does this imply about the relative willingness of state government..

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!

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