Pricing strategy, Business Economics

Assignment Help:

You own a small retail business that produces a product that is slightly different from that of your many competitors. Your firm is currently making an economic profit. The absolute value of the elasticity of demand for your product at the current price is less than one (i.e., inelastic).

a) What pricing strategy would you suggest, and why?

b) What would you expect the long-run future of your business to be, and why? Use graphs to explain your answer.

c) What long-run strategy would you suggest for your firm, and why? Use a graph to explain your answer.


Related Discussions:- Pricing strategy

Distinguish between internal and external economies of scale, Use short not...

Use short notes and illustrations to answer the following questions: i) Distinguish between an indifference curve and an isoquant ii) Distinguish between substitution and inc

What is economic partnership agreement, Problem 1: "African Caribbean a...

Problem 1: "African Caribbean and Pacific (ACP) countries no longer have preferential access to the European market for their exports, except under provisions of „Special and D

Price elasticity of demand, explain why each of the following factors influ...

explain why each of the following factors influence the own price elasticity of demand for a comodity 1. Consumer preferences 2. the narrowness of definiton of the commodity

Law of commerce, Hatfield owned a large farm on which he grew grain. His co...

Hatfield owned a large farm on which he grew grain. His combine was inadequate in relation to the acreage of grain that he harvested annually. As a result, on several occasions his

What are the restrictions of dependency theory, What are the restrictions o...

What are the restrictions of dependency theory? The restrictions of dependency theory: • Self sufficiency and import-substitution strategy mean the advantages of Internatio

How can be comparative advantage improved, How can be comparative advantage...

How can be comparative advantage improved? Comparative advantage can be gained or improved through: • Investment during the education and also in training • Investment wi

Price elasticity of demand, QUESTION 1 (a) Explain the relationship bet...

QUESTION 1 (a) Explain the relationship between scarcity, choice and opportunity cost. (b) How is choice about the use of scarce resources made in a market economy? QUES

How does foreign debt management improve development, How does foreign debt...

How does foreign debt management improve development? Borrowing is a policy to encourage growth like aid represents an injection of resources within the economy which enable

What are the main types of unemployment, QUESTION (a) What are the main...

QUESTION (a) What are the main types of unemployment? (b) Mauritius has been facing an alarming rate of unemployment during the last 5 years (i) What reasons could explai

Write Your Message!

Captcha
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