Suppose you are a marketer for a small, regional airline. Taking into consideration both the cultural rule and rapidly changing fuel costs, what type of marketing development approach would you select, and why
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Suppose you are a marketer for a small, regional airline. Taking into consideration both the cultural rule and rapidly changing fuel costs, what type of marketing development approach would you select, and why
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- The table below depicts the prices and total costs a local used-book store faces. The bookstore competes with a number of similar stores, but it capitalizes on its location and the word-of-mouth reputation of the coffee it serves to its customers. Calculate the store's total revenue, total profit, marginal revenue, and marginal cost at each level of output, beginning with the first unit (Enter all values rounded to the nearest penny.) Total Price per Book (S) Costs ($) Total Total Marginal Revenue (S) Marginal Cost ($) Revenue ($) Profit (S) - 4 Output 5.75 4.00 1 5.50 7.25 5.5 - 1.75 5.5 3.25 2 5.25 9.50 10.5 1 2.25 3 5.00 11.60 15 3.4 4.5 2.1 4 4.75 14.10 19 4.9 4 25 4.50 17.60 22.5 4.9 3.5 3.5 6 4.25 21.75 25.5 3.75 3 4.15 7 4.00 26.50 28 1.5 2.5 4.75 Based on marginal analysis, what is the approximate profit-maximizing level of output for this business?What is the current market size and growth potential of the South African chrome market?You are the manager of the local movie theatre in a small town. Running a movie has a fixed cost of $2,000, but selling an extra ticket (i.e. accommodating an extra viewer) has zero marginal cost. Below are the demand schedules for your two types of customers: Price $ Adults Teens and Seniors 10 50 9 100 8 200 7 200 50 6 300 100 5 350 150 4 400 200 3 400 300 400 300 1 400 300 If you are to charge a single price (i.e., if price discrimination is prohibited), what price would you set for a ticket to maximize profit? How much profit do you make? Price = $ Profit = $ If you were allowed to price-discriminate, what price would you charge for an adult ticket? For senior/teen ticket? How much profit do you make? Price for adults = $ Price for seniors/teens= $ Profit = $
- A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=60-0.1D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $2,000 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? COLL a. The maximum profit per month for this product is $. (Round to the nearest dollar.) BOX AIWhich of the following measures is conceptually the same as price? A) Marginal revenue. B) Average cost. C) Total revenue. D) Marginal cost.Q6-What type of Competition exists in the following industry? a) K Electric in Karachi b) Getz pharmaceutical company c) Pakistan Railways d) ARY news channel e) Shaheen Airline
- Exercise 2.9 Firms in a competitive industry have production costs C(q)=q²+20q+100 and the industry demand is QD(P)=1200-10P; a) Find the price, the production of the representative company, the production of the industry and the number of companies that will be part of the industry it in the long-term equilibrium. b) Suppose that demand shifts to Qº'(P) = 1.800 - 12P. Find the price, quantity and profits of companies in the short term. Calculate the social welfare corresponding to this equilibrium. (c) Calculate the final long-term equilibrium. Describe the adjustment process in a graph.The airline’s use of demand pricing results in passengers paying different prices for essentially the same seat. What is the benefit of this practice to the airline and to the passengers? What is the drawback to the airline and the passengers? Do you think this practice should be continued? If not, what would be the best alternative?Question: Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC-$1. The number of customers in the target population is 10,000. Analyze the challenges that the marketing firm will be facing to evaluate customer demand. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% Tweeners $2 10% Seniors $2 10% Others $0 40%
- A competitive firm's cost of producing q units of output is TC=18+4q+q^2 Its corresponding marginal cost is MC=4+2q The firm faces a market price p = $24. Create a spreadsheet with q = 0, 1, 2, …, 15, where the columns are q, TR, TC, TVC, AVC, MC, and profit. Determine the profit-maximizing output for the firm and the corresponding profit. Should the firm produce this level of output or should it shut down? Explain briefly. Suppose the competitive price declines to p = $12. Repeat the calculations of part a. Should the firm shut down?Suppose you own a tax preparation services company, with fixed costs of $3,000/month and marginal costs of $25/appt.If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760appointments would be sold. a.)Use these figures to calculate the price elasticity of demand for your services. b.)Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt. c.)Given these calculations, what price should you charge for your services, $50/apptor $60/appt? ExplainIn the 1928, Knoxville was served by a single railroad line. Because alternative forms of transportation were not close substitutes for rail transportation in 1928, this railroad had a transportation monopoly in Knoxville. The estimated monthly fixed cost associated with operating a railroad was $1,200. In addition, there was a constant average variable cost and marginal cost of $0.02 per ton-mile associated with the railroad's operation. The estimated monthly demand for transportation on the railroad was: Qd = q = 80,000 - 1,000,000P where Qd was the monthly quantity demanded in ton-miles and P was the price per ton-mile in dollars. Based upon the above equation, answer the following questions: a. What is the profit-maximizing price and quantity? b. Would a private company build the railroad? c. What is the socially optimal price and quantity?