pricing déčišións Epsilon Enterprise Ltd, a manufacturer of small household appliances, has carried out market research to detemine that if a price of £250 is charged for one of its best-selling products, the Shark, demand will be 12,000 units. Epsilon Enterprise has also established that demand will rise or fall by 5 units for every £1 fall/rise in the selling price of the Shark. The marginal cost of the Shark is £80. The formula for Marginal Revenue (MR) = a - 2bQ when the selling price P = a- bQ, where: P = the price Q = the quantity demanded a = the theoretical maximum price b = change in price/change in quantity (b) Discuss any four factors other than price, that can influence the demand for a product or service.

pricing déčišións Epsilon Enterprise Ltd, a manufacturer of small household appliances, has carried out market research to detemine that if a price of £250 is charged for one of its best-selling products, the Shark, demand will be 12,000 units. Epsilon Enterprise has also established that demand will rise or fall by 5 units for every £1 fall/rise in the selling price of the Shark. The marginal cost of the Shark is £80. The formula for Marginal Revenue (MR) = a - 2bQ when the selling price P = a- bQ, where: P = the price Q = the quantity demanded a = the theoretical maximum price b = change in price/change in quantity (b) Discuss any four factors other than price, that can influence the demand for a product or service.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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