Lesedi General Dealer has been the sole supermarket in Otse.Recently ,two strong competitors (Choppies and Spar) have set up shop in different locations within the village.Given the slow growth as a result of the Covid pandemic ,determine an appropriate grand strategy and justify its selection

Lesedi General Dealer has been the sole supermarket in Otse.Recently ,two strong competitors (Choppies and Spar) have set up shop in different locations within the village.Given the slow growth as a result of the Covid pandemic ,determine an appropriate grand strategy and justify its selection

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcendent Technologies is deciding between developing a complicated thought- activated software, or a simple voice-activated software. Since the thought-activated software is complicated, it only has a 30% chance of actually going through to a successful launch, but would generate revenues of $50million if launched. The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million. The complicated technology costs 10million, whereas the simple technology costs 2 million. What is the expected profit from developing the complicated software? $10 million $15 million $20 million $5 million
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Bevan’s Cycles, a chain of bike shops that were early adopters of an online business model, are trying to improve customer satisfaction from bike purchases. To do so, they are considering setting up a ‘fitting service’ to help customers get the perfect fit on their bikes, thus reducing bicycles returned. The way the service would operate is that customers will book a session with a ‘fitting expert’. This will involve the customer coming into the shop where they will be filmed riding a stationary bike (like you get at the gym) and then the film will be analysed by a computer system to give them the perfect fitting bike. At each bike shop, this will entail a fixed cost for installing the computer system for analysing each customer and a marginal cost for training each member of staff. The head office sets a budget of £10,000 if 2 members of staff are trained, and for the bigger stores £12,000 if 3 members of staff are trained. The total expense for this must be incurred in a single year.…
Pre-mixed concrete is an important input for the construction industry. Concrete cannot be stored or transported over long distances as it begins to set after only a few hours. For this reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—are in a position to compete in the market. Moreover, the capital and regulatory requirements for constructing a new concrete plant are substantial, creating an effective barrier to entry. Pre-mixed concrete is regarded as a homogeneous good by the construction industry. Inverse demand in the market has been estimated to be,P = 670 − Q/40,where P represents the price of a cubic metre of concrete in dollars, and Q is the total number of cubic metres of concrete supplied into the market on a given day. At present the three firms appear have identical production costs, with each firm facing fixed costs of $400,000 per day and a marginal cost of $190 per cubic metre. Big Industries and ConCorp estimate that the proposed merger…
For the entry deterrence example we discussed today, [Market demand Q(p) = 100 p. the incumbent firm's marginal cost MC = 20, the entrant's marginal cost MC = 20] (A) The incumbent firm's strategy if F = 300 will be entry deterrence. (F is the Entrant's fixed entry cost.) (B) If F = 300 entry deterrence is socially optimal. * (A) is true; (B) is false (A) is false; (B) is true Both (A) and (B) are false Both (A) and (B) are true
A total of 10 players are each choosing a number from {0,1,2,3,4,5,6,7,8}. If a player's number equals exactly half of the average of the numbers submitted by the other nine players, then she is paid $100; otherwise, she is paid 0. Solve for the strategies that survive the IDSDS.