What pricing strategy will yield the greatest revenue?

Assignment Help Microeconomics
Reference no: EM13173366

A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacture has determined that men value a simple microwave at $70 and one with auto-defrost at $80 while women value a simple microwave at $80 and one with auto-defrost at $150. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women compromise the bulk of microwave shoppers?

Reference no: EM13173366

Questions Cloud

Define same balloon is placed in the freezer and cooled : what volume will it occupy? Assume constant pressure. Note the temperatures are given in two different units. Be sure to change each to deg K first.
What is the cpi : What is the CPI (Consumer Price Index) and what significance does it hold in regards to goods and services? Please explain in detail.
State the steam is then sent back to the boiler : The steam is then sent back to the boiler (constant pressure heat exchanger) and reheated to 300oC. In a secondary turbine, the steam is expanded to 10kPa.
State what is the concentration of sodium ions : what is the concentration of sodium ions in the resulting solution?
What pricing strategy will yield the greatest revenue? : Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto defrost feature.
Specify the standard free energies of formation delta g : Given the standard free energies of formation, what is the value of for the cell reaction?
State what is the rate law for the reaction : Consider the proposed mechanism for a reaction below. What is the rate law for the overall reaction?
State the boiling point versus the volume of distillate : from the plots of the boiling point versus the volume of distillate in either of the fractional distillations of the ethanol-water mixture,what conclusion can you draw about the homogeneity of the distillate?
Define fitr-btgi-macrs : Show that the MACRS system is more beneficial economically. Use a 5-year tax life. The corporate MARR is 10%, and the tax rate is 34.

Reviews

Write a Review

Microeconomics Questions & Answers

  Question related to international trade

Choose a United States multinational firm. In terms of currency denomination, discuss how the company values its revenues and costs.

  Examining returns to scale of production function

Consider the production function Q=100L^.5K^.4. Suppose L=1 and K=1 so that Q=100. Explain the nature of returns to scale for this production function.

  Differences between monopolistic competition-pure monopoly

If the economy is at point C, what is the cost of one more automobile? One more rocket? Explain how the production possibilities curve reflects the law of increasing opportunities costs

  Describe planning or operating decisions

Describe planning or operating decisions for your new or existing good or service based on the economy's stage in the business cycle and other economic conditions.

  Determine the profit maximizing quantity

Choose an existing good or service from Will Bury's Price Elasticity, Incremental expenses, or Thomas Money Service Corporation scenarios, or choose an existing business with which you are familiar.

  Example of monopoly

Give an example of a monopoly, an oligopoly, and a cartel. Describe the welfare effects of monopolies and oligopolies.

  Draw demand curve for bridge crossings

Assume you're in charge of the toll bridge that essentially cost free. The demand for bridge crossings Q is given by P = 60 - 2Q. Draw a demand curve for bridge crossings

  Market characteristics for pizza franchise

In what kind of market do you think your franchise operates (perfectly competitive, monopoly, monopolistically competitive, oligopoly)? What are the specific characteristics which make it this type of firm?

  What is the minimum efficient scale in this industry

What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity?

  Discuss the impact of globalization

Select a United States company with global operations. Discuss the company's activities outside the United States and Discuss the impact of globalization

  Interaction of fiscal and monetary policy

Intelligent fiscal policy and appropriate monetary policy permit for a stabilizing influence on US economy. The government is able to make action through expansionary or contractionary fiscal policy to manage recession and inflation when necessary.

  Discuss the steps the oligopoly should take to address

Assume that a very competitive start-up enters the market in direct competition with the oligopoly you described in the e-Activity, initially gaining a 12% market share.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd