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Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu. The company has recently introduced a new and improved Alka-Seltzer Plus, as described in this TV ad. The ad shows that Alka-Seltzer Plus can fight congestion, unlike NyQuil. Explain how Alka-Seltzer Plus has been quality and price-positioned in an existing market. In your opinion, has Bayer positioned their product appropriately in the market for cold and flu symptoms relief products? Would you advise Bayer to use a skimming or a penetration pricing strategy? Explain your reasoning. How do you think Proctor and Gamble, the company who produces Vicks NyQuil, would respond to the ad?
Describe what would happen if an outside agency determined the prices eBay could charge.
Consider a small open economy in the short run where the government imposes trade tariffs on corn. Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output? Under which regime does the money supply increase..
For a competitive market-a seller can always increase her profit by raising the price of her product. if a seller charges more than the going price, buyers will go elsewhere to make their purchases.
Briefly elucidate how three aspects of the demographic transition model account for europes tranfomation into a destination region for migrants from north africa between 1960 and 2000.
Illustrate what will be the most likely new equilibrium price level and output.
Use a diagram to explain the following: In the case of perfect substitutes, if the ratio of input prices equals the MRTS, will a unique solution to the firm's cost-minimization problem exist? In the case of perfect substitutes, if the ratio of input ..
In the USA buying and selling of human organs is illegal. Those who need organs cannot buy organs from the market and those who donate organs cannot sell their organs. In your diagram show the effect of this policy change. Will this policy increase t..
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed. What are the different price points.
How would each of the following affect the U.S. market supply curve for corn? Show your answers graphically and briefly explain.
The average avoidable cost for a fringe firm is AAC(q) = 20/q + 5q. The marginal cost function for a fringe firm is MC = 10q . There are 10 fringe firms. The marginal cost of the dominant firm is 2 and the demand function is Q = 100 - P. What is the ..
4.5 Grocery store chain often set consumer-specific price by issuing frequent –buyer cards to willing customers and collecting information about their purchases. Grocery chains can use that data to offer customized discount coupons to individuals. Wh..
Illustrate what recording fee would you advise Johnny to demand from the record company.
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