The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $20, $10, $5, and $3 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $10, $20, $30, $38, and $44 (one buyer at each price). For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied. Price ($ per widget) Quantity Demanded (widgets) $3 $5 $10 $20 $30 $38 $44 Quantity Supplied (widgets) In this market, the equilibrium price will be per widget, and the equilibrium quantity will be widgets.

In 2019, a ski resort increased the prices it charged for one-day ski passes and season passes. If someone buys a season pass, he can ski as many days as he wishes. The table below provides information on the prices and the number of passes sold in 2018 and 2019. Number of Passes Number of Passes Type of Pass Price in 2018 Price in 2019 Sold in 2018 Sold in 2019 One day $60 5,000 $80 4,200 Season $1,200 250 $1,400 225 Given the information in the table, we know that the revenue earned from selling day passes changed by $ ,and the revenue earned from selling season passes changed by $

Suppose you were asked to manage a golf course that was currently charging a uniform price.  Would you suggest that the course continue with this price plan or switch to a two-part pricing plan?  Explain your decision and how you would choose the optimal price.

Describe the difference between an everyday low price strategy (EDLP) and a high/low price strategy

Based on Zangwill (1992). Murray Manufacturing runs a day shift and a night shift. Regardless of the number of units produced, the only production cost during a shift is a setup cost. It costs $8000 to run the day shift and $4500 to run the night shift. Demand for the next two days is as follows: day 1, 2000; night 1, 3000; day 2, 2000; night 2, 3000. It costs $1 per unit to hold a unit in inventory for a shift. a. Determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. (Note: Not all shifts have to be run.) b. After listening to a seminar on the virtues of the Japanese theory of production, Murray has cut the setup cost of its day shift to $1000 per shift and the setup cost of its night shift to $3500 per shift. Now determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. Show that the decrease in setup costs has actually raised the average inventory level. Is this…

Clubs often do some buying and selling during fundraisers, working with a vendor to make mugs, T-shirts, hoodies etc. that display the club's logo. There can be big savings for bulk orders. DiscountMugS (http://www.discountmugs.com) is an on-line company with this kind of service. Suppose a high school group orders T-shirts for a fundraiser. The table below shows the pricing shown on the webslte. Note that the fixed cost Involved in setting up the printing with the logo is absorbed into the pricing schedule. 576+ 1008+ 2016+ Quantity Cost per T S5.55 $4.90 $4.86 12+ 24+ 36+ 72+ 144+ 288+ $4.73 $4.62 $4.58 $4.42 $4.01 S3.59 a) We have seen problems for which breaking even was the goal, but in the context of fundraising the idea of break-even is not really the point! The goal may be to raise enough funds for, say, the choir to take part in an out of state competition, or for the Odyssey of the Mind team to go to World's. If the club is comfortable charging $8 per T-shirt how many must be…

A Caterpillar tractor one of the largest farm machinery in the world has requested for your services on pricing policy for its product. One of the things the company would like to to know is how much a 5% increase in price is likely to reduce the firm’s sales. What could you require in order to advice?

The following chart tells you the willingness to pay (WTP) for generic and custom refrigerators for three types and the number of each type on your market. Each refrigerator costs $200 to make the generic and $250 to make the custom. High Value Medium Value Low Value #of each type 20 30 30 Value for generic 600 500 175 Total value for Custom 750 575 200 If you were only to sell the generic refrigerator, what price should you set? If you were to sell both refrigerator types, what price should you set for the custom refrigerator?

What is your average direct sale price to Online consumers? How is your average different than the competition? Explain.

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