Jazmah Industries received a patent on their new ozone generator. The product will sell for $471, and it will clean the air inside a home and eliminate 95% of the pollution particles inside the home. Jazmah's market research shows that there are 111 million homes in North America. The firm believes an aggressive marketing campaign focusing on heavily polluted regions of the country will allow them to get about 30% of this market. Their research shows that about 43% of the houses are in heavily polluted areas. How many houses are in Jazmah's target market? $674, 424,900 $ 6, 744, 249, 000 $4, 242, 275, 000 $4, 709, 314, 000 $8, 730, 854, 000

Jazmah Industries received a patent on their new ozone generator. The product will sell for $471, and it will clean the air inside a home and eliminate 95% of the pollution particles inside the home. Jazmah's market research shows that there are 111 million homes in North America. The firm believes an aggressive marketing campaign focusing on heavily polluted regions of the country will allow them to get about 30% of this market. Their research shows that about 43% of the houses are in heavily polluted areas. How many houses are in Jazmah's target market? $674, 424,900 $ 6, 744, 249, 000 $4, 242, 275, 000 $4, 709, 314, 000 $8, 730, 854, 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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LalaFast 21 is a major carrier based in the Philippines and has made a strategy of cutting fares drastically on certain routes with large effects on traffic in those markets. For example, on the Baguio-Cubao route the entry of LalaFast into the market caused average fares to fall by 48 per cent and increased market revenue from P21,327,008 to P47,064,782 annually. On the Tuguegarao-Caloocan route, however, the average fare cut in the market when LalaFaST entered was 70 per cent and market revenue fell from an annual P66,201,553 to P33,101,514.Questions1. Calculate the PEDs for the Baguio-Cubao route and Tuguegarao-Caloocan route.2. Explain why the above market elasticities might not apply specifically to Lalafast 21.3. If LalaFast 21 does experience a highly elastic demand on the Baguio-Cubao route, what is the profit implication of this?4. Explain why the fare reduction on the Tuguegarao-Caloocan route a profitable strategy for LalaFast may still be.
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