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Management estimates the relationship between demand, D, and price, P, by the linear function D = 2,400 - 0.6P.
a. At what price is revenue maximized and what is this maximum revenue ?
b. If the retailer charges the price you computed in part (a) above, how much money does the retailer leave on the table?
c. What would be the total revenue if the retailer can introduce three pricing classes: 2,000, 2,400 and 2,700?
d. Briefly describe a situation in which a retailer can charge three different prices for the same product.
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A Singapore company manufactures 50-inch and 75-inch rear projection television sets. Each 50-inch set contributes $200 to profits and each 75-inch set contributes $475 to profits. The company has purchase commitments for 500 50-inch sets and 200 75-..
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Organizations that implement performance management systems that include team performance must redesign their rewards to reward this type of performance.
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