A computer hardware firm sells both laptopcomputers and printers. It has a largeinventory of laptops and printers that it wantsto sell, so it has no variable production cost.Through the magic of focus groups, theirpricing team determines that they have anequal number of 4 types of customers, andthat these customer's reservation prices are:laptop$600$400$1200$500printer$900$200$200$300cst type Acst type Bcst type Ccst type DWhat is the best pricing strategy for this firm?Selling each product separately, purebundling or mixed bundling? Prove youranswer with numbers.

Customer Laptop Printer A 600 900 B 400 200 C 1200 200 D 500 300

Answered: A computer hardware firm sells both…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Canadian FirmZ is located in Canada. FirmZ sends its products to CustomerY in Argentina. Customery pays FirmZ via credit card. This is an example of: a) Indirect export b) Direct export O c) c) Licensing O d) Franchising
Mr. Nelson, the manager of a US company, entered into a contract with an Italian company, Roma, to order some leather suitcases. The Goods were delivered on time, but with some of the zippers on the suitcase defective. Mr. Nelson contracted Roma and gave a notice that he wanted to cancel the contract. Roma responded that they only can give a reduction in the price. Who is legally right?
Suppose the European Union (EU) was investigated and proposed a merger between two of the largest distillers of premium Scotch liquor. Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is -1.9 and that it costs $16.90 to produce and distribute each liter of Scotch Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor. Instructions: Do not round Intermediate calculations. Enter your final responses rounded to the nearest penny (two decimal places). Pre-merger price: $ 19:43 Post-merger price: $ 23.02
Problem 08-16 (algo) You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university's specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its "free service after the sale" policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q=1,000 - 4P, and its weekly cost of producing computers is C(Q) = 2,000 + 2Q². If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm's profits? Instructions: Round your response to the nearest whole number. Quantity:…
Only typed answer The incentive to cheat within a cartel increases with an increase in the following factors, except: a) Economic performance and industry sales b) the differences in costs across firms c) The number of firms operating in the cartel d) The number of possible entrants into the indu stry
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DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.d) If there were two firms on the market and they agreed to cooperate, how much would eachfirm need to produce? Follow the procedure outlined in the lecture and show that the otherfirm would prefer to deviate from the agreement.e) When the firms deviate from the agreement, there is a new optimal level of output. Showwhether the firms have an incentive to deviate from that level?f) If there were two firms on the market, what would be the price and the quantity of pencilstraded if the firms couldn’t cooperate?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The competitive advantage refers to factors that help businesses to produce goods or services effectively or at a lower cost than competitors. These factors also help businesses to increase sales revenue or higher margins than their competitors in the market. Everywhere in the world, competition in the hotel industry is fierce within strategic groups, depending on the level of industry growth. The competitive advantages for the 4-star hotel are as follows: 1. International travelers can be catered: International travel is becoming more popular. As the hotel has a staff who speaks multiple languages this means that managers can provide promotional materials and activity guides in a number of different languages. Multilingual employees will allow guests to communicate more clearly with them. They can also offer promotional materials and activity guides in a number of different languages. 2. Can provide spacious accommodations: The guests can select their rooms as per their…
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Problem 2: Presently, APlus Transport and Big Movers are the only suppliers of services that haul heavy construction equipment between jobs within the Midwest. No other suppliers have the equipment necessary to perform the service. The market inverse demand for these hauling services is given below. P = 4,030-4Q where P is price per trip and Q is total number of trips per year. For simplicity, also assume that neither firm has fixed costs. From company records, you are given the following variable cost function for each firm: a. C. TVC = 300 TVCB = 80QB b. Calculate the Cournot market equilibrium price-output solutions for each firm including their respective profits. d. Assume these two competitors operate as a two-firm Cournot duopoly. Find the reaction functions for each firm. Suppose Big Movers shuts down operations so that APlus now has a monopoly in this market. What is the price, quantity, and profits for APlus after this change? Summarize the results of your findings over the…

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