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Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coca-Cola would continue to earn a $300 million profit. Suppose that by introducing a new lemon-lime soft drink, one of two possible strategies could be pursued:
(1) PepsiCo could trigger a price war with Coca-Cola in both the lemon-lime and cola markets, or (2) Coca-Cola could acquiesce and each firm maintain its current 50/50 split of the cola market and split the lemon-lime market 30/70 (PepsiCo/Coca-Cola). If PepsiCo introduced a lemon-lime soft drink and a price war resulted, both companies would earn profits of $100 million. Alternatively, Coca-Cola and PepsiCo would earn $275 million and $227 million, respectively, if PepsiCo introduced a lemon-lime soft drink and Coca-Cola acquiesced and split the markets as listed above. If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy? Why or why not (explain)? Can you draw any general conclusions from this case study
the total demand marginal benefit curve for visiting yosemite is as follows price 5000-10numberoftrips
A HR Director for a medium size public company. Under Americans with Disabilities Act are the following workers entitled to a affordable accommodation and, if so, what would be affordable:
If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that marginal revenue exceeds marginal cost.
Estimate the b coefficints of the non-linear regression and do a statistical analysis of the coefficients and what is the implication of the non-liniear regerssion to MPC?
Evaluate the overall explanatory power of the regression model. Use a 0 . 05 level of significance. State all your hypotheses and explain your results. Do not use rules of thumb.
Third national bank had a reserve of $20000 and checkable deposits of $200000. The reserve ratio is 10%. Households deposits $5000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank now..
Create a start-up business to produce a specific product (a good or service). A three to five (3-5) page written research paper on the start- up business, the product and the market structure of the industry is required.
consider what age group you hope to work with and reflect on which aspects of piagets theory will be the most useful to
How many units of labor should the firm use in order to produce 400 units of output at the least cost and the minimum cost of producing 800 units of output is what?
Roughly speaking, a merger between two firms is legal:
Suppose the elasticity of deamnd for cereal is 1.If cereal increases in price by25%, how much will the quantitiy demanded decrease by?
What are the firm's maximum profits?
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