Given scenario: Person X is the owner of the small company which provides heating oil to business customers and residential customers in the rural country. Person X is a respected member of the community. Due to energy efficiency and a move away from oil heat, the profits are cut down to nothing. Person X hired Person H for the post of marketing manager. During the prior heating season, due to increase in the oil prices, customers are comfortable to pay more than $2.60 per gallon. However, Person H stated that providing the special offer (pricing $2.40 per gallon) helps to give more profit. To determine: The role of supply and demand in the scenario.

Question

Please original work (Please dont add any AI sentences) Background information: LEGO was founded in 1932. The word LEGO is from the Danish words LEg GOdt (play well). Later, it was realized that in Latin the word means “I put together”. The firm initially made wooden toys as well as other wood products stepladders, ironing boards, stools, etc. In 1947, the LEGO Group bought a plastic injection-molding machine for toy production and in 1949 the first LEGO Automatic Binding Brick with four and eight studs appeared. LEGO flourished for many years with its innovative toys. However, in 2004, innovation almost bankrupted the Danish toymaker. LEGO had become concerned about low-cost copies of its plastic building products so it sought to diversify into different activities including: theme parks, Clikits craft sets, action figures (Galidor), and a television show among other efforts. All of these were unprofitable and were eventually discontinued. Today, LEGO is growing in an overall…

Answer 1

Question

Chapter 1, Problem 1.19EE

Summary Introduction

Given scenario:

Person X is the owner of the small company which provides heating oil to business customers and residential customers in the rural country. Person X is a respected member of the community. Due to energy efficiency and a move away from oil heat, the profits are cut down to nothing. Person X hired Person H for the post of marketing manager. During the prior heating season, due to increase in the oil prices, customers are comfortable to pay more than $2.60 per gallon. However, Person H stated that providing the special offer (pricing $2.40 per gallon) helps to give more profit.

To determine: The role of supply and demand in the scenario.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Please original work (Please dont add any AI sentences) Background information: LEGO was founded in 1932. The word LEGO is from the Danish words LEg GOdt (play well). Later, it was realized that in Latin the word means “I put together”. The firm initially made wooden toys as well as other wood products stepladders, ironing boards, stools, etc. In 1947, the LEGO Group bought a plastic injection-molding machine for toy production and in 1949 the first LEGO Automatic Binding Brick with four and eight studs appeared. LEGO flourished for many years with its innovative toys. However, in 2004, innovation almost bankrupted the Danish toymaker. LEGO had become concerned about low-cost copies of its plastic building products so it sought to diversify into different activities including: theme parks, Clikits craft sets, action figures (Galidor), and a television show among other efforts. All of these were unprofitable and were eventually discontinued. Today, LEGO is growing in an overall…

Please original work Talk about your current organization’s greatest needs for creating a balanced scorecard for management consulting firm, and steps you would take to design the balance scorecard. Please cite in text references and add weblinks.

Please original work How do you think organizations can effectively balance short-term resource constraints with the need for long-term investments in areas like technology and employee development, especially when both are critical to achieving strategic goals? Please cite in text references and add weblinks