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Demand for airline tickets fluctuates throughout the year, which affects the price of an airline ticket. Suggest the type of game that may be most appropriate for a specific airline to play to address the differences in demand and elasticity and the resulting impact on profitability.
From the first question, propose a short-term and long-term pricing strategy for the product or service you researched including how the strategies would be implemented. Assess how your proposal ultimately maximizes profits.
Pricing Techniques
Propose the new target market segment for the product and its accompanying pricing strategy (for example, bundling and couponing). Provide a rational for why you feel the new target market and pricing strategy would be successful and the likely impact to the profitability of the firm.
The pharmaceutical industry often has the luxury of implementing pricing strategies that appear high to consumers. Take a position on the fairness of the industry's approach to pricing pharmaceutical products including offering an alternative strategy that may be more palatable to consumers. Provide a rationale with your position.
A 40 year annuity due has level annual payments of $1000 except for the m-th payment which is $2000. When using an annual effective interest rate of 5%, the value of the annuity four years after the first payment is $22,722.53 Find M.
An injection molding machine produces golf tees that are 20.0% nonconforming. Using the normal distribution as an approximation to the binomial, find the probability that, in a random sample of 360 golf tees, 65 or less are nonconforming. Show you..
There are 10 flights from Minneapolis to St. Cloud each day. The probability that any one flight is late is 0.05. Using the binomial probability formula, what is the probability that 1 or more are late?
The time it takes a symphony orchestra to play beethovens ninth symphony has a normal distribution with a mean of 64.3 minutes and a standard deviation of 1.15 minutes. If an orchestra plays it so slowly that 80% of the orchestras play faster than..
What is the dierence between separating and pooling equilibria in this model? Find the separating equilibrium with the lowest possible education level for the high type and What is the largest level of education that can be chosen by workers with..
Consider the following data for a simultaneous move ggiven: If you advertise and your rival advertises, you will each earn 5 million dollar in profits.
Your firm has determined that if the average household salary in a geographic area is greater than $53000, then their product will be successful.
The standard deviation of fresh fruit consumption is about 30 pounds. Suppose a researcher took a random sample of 38 people and had them keep a record of the fresh fruit they ate for one year.
Suppose the maximum risk value for a particular client is 0.4. What is the optimal allocation of investment funds among stocks, bonds, mutual funds and cash? What is the annual rate of return and the total risk for the optimal portfolio?
Company A and B are battling for market share in two separate markets. Market I is worth $30 million in revenue; market II is worth $18 million.
What is the dominant strategy and describe the Nash equilibrium or Nash equilibria, Why did they do this? Do you think that Sun Resorts cares about how many airlines will serve the island? Explain.
Critical Thinking: Suppose you and a friend each take different random samples of data pairs (x,y) from the sample population. Assume the samples are the same size.
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