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Q. Include rationale for the subsequent questions:
• How will you increase revenue?
• How will you conclude the profit-maximizing quantity?
• How could you use the concepts of marginal cost also marginal revenue to maximize profit? Illustrate what information do you need to conclude this? Without this information, how would you make a decision?
• Illustrate what is your suggested mix of pricing also non-pricing strategies? Elucidate your answer.
• Can you create or increase barriers to entry? If so how?
• How will you increase product differentiation?
• Are there other ways to minimize costs for the product?
Joe has $16 to spend on Twinkies and Hohos. Twinkies are prices at $1 and Hohos are priced at $2 per pack.
Some companies establish prices for their products by marking up their full manufacturing cost
its marginal costs are below total average costs. If it creates an additional watch where its average total costs rise -fall or stay the same.
If buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers.
Alchemy allows the other firms to sell as much as they wish at the established price and supplies the remainder of the demand itself.
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
Would the sales of pollution rights or certificates be an efficient means of allocating a given amount of pollution.
Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected.
If Frank's salary as a sales manager was $70,000 instead of $100,000 would your answer be different.
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
Assume in this country they save 20% of their income, population grows at 3% every year also depreciation of capital occurs at 10% every year.
What performance percentage would you use to trigger executive bonuses for that year.
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