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- Which of the following is not one of the pitfalls of a low-cost provider strategy? Multiple Choice overly aggressive price-cutting becoming so fixated on cost reductions that products become too features-poor cutting prices more than the size of a company's cost advantageProvide an overview of online marketing tactics and partnerships, including business-to-business (B2B) and consumer-to-business (B2C) options.A firm should enter an industry if total revenue is equal to total cost. a) True b) False
- What presentation of data can be used for this case studyABC, Inc. produces a special stem cell safety container in a monopolistically competitive market. The market is restricted to stem cell researchers and a few large medical agencies (e.g., Department of Health). The company has profitably exploited its market niche. However, the XYZ Company could enter into the market. The following market demand and cost information has been developed: P = $3000-$0.25Q, MR = ƏTR/ƏQ = $350 - $4.4Q, %3D TC = $1950 + $7.5Q2 + $6.5Q MC = ƏTC/aQ = $14 + $4Q, where P is price, Q is units measured by the number of containers, MR is marginal revenue, TC is total costs including a normal rate of return, MC is marginal cost, and all figures are in dollars. Assume that demand and cost data are descriptive of ABC's historical experience. If ABC wants to maximize their profit before XYZ enters the market, what would the following amounts be for: a. Price: P = $Answer b. Output (or Quantity): Q = Answer units c. Total Cost: TC = $Answer d. Economic Profits Earned: N…Each firm in a perfectly competetive market has a long-run total cost of LRTC = 100g – 10q + 100. The market demand is Q* = 2150 – 5P. At the long-run equilibrium price, how many firms will there be in the market? (а) 500 (b) 1,000 (c) 1,200 (d) 2,000 (e) 2,400
- The inverse demand function for a homogeneous product Stackelberg duopoly is P = 18, 000 − 5Q. Thecost structure for the leader and follower, respectively, are CL(QL) = 2, 000QL and CF (QF ) = 4, 000QF .(a) What is the follower’s reaction function?(b) Determine the equilibrium output level for both the leader and follower.(c) Determine the equilibrium market price.(d) Determine the profits of the leader and the follower.How does advertising impact monopolistically competitive firms? (a) advertising always causes monopolistically competitive firms to experience lower average costs (b) it either causes a firm's perceiveddemand curve to become more elastic, or advertising causes demand for the firm's product to increase.A monopolist faces a demand curve described by p(g) = 100-2g and has constant marginal costs of 16 and zero fixed costs. If this monopolist is able to practice perfect price discrimination, its total profits will be: (a) 1,092 O (b) 2,646 O (c) 882 O (d) 1,764
- (a) A monopolist sells its product in two markets, Spain and France. Its cost function is given by C = 4Q, where Q denotes total output, so the marginal cost is constant and equal to 4. The Spanish demand is given by QS = 6 – 0.5PS and the French demand is given by QF = 16 - PF, where PS and PF denote the price in Spain and the price in France, respectively. (i) (11) Define third-degree price discrimination. Assuming that third-degree price discrimination between the two markets is possible, calculate the price the monopolist will set in Spain, the price it will set in France and the firm's total profit. A new regulation now requires the firm to charge the same price to all its customers irrespective of the country they live in. Discuss the effect of this on the consumer surplus of Spanish customers, the consumer surplus of French customers and the firm's profit as compared to the situation in part (i).Q/ The demand function of one of the companies has been estimated as follows: (Q=11000 - 3p + 0.51 + 0.01A) P=2,000 I=4,000 A=100,000 A/ Determine the price, income, and advertising elasticities of demand? Then determine the price that maximizes total revenue?Consider the demand function (a) Determine the inverse demand function. (b) Determine the revenue function. Q = 600-3Px (c) Determine the marginal revenue function. (d) Determine the quantity and price at which revenue is maximized and the maximum revenue. (e) Draw a graph of the demand curve and marginal revenue curve on the same axis. Label axes and curves and mark out all intercepts.
