Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 10, Problem 10.2IP
To determine
The effects of an effort to increase the value of a product.
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Students have asked these similar questions
Advertising and sales promotions are ways of persuading consumers to match demand with products offered by sellers. Advertising can be informative or competitive. Explain the good and bad of advertising for society!
If you do not have a large market for your product or service, what should you do to be sure it retains its value?
Make sure to scale your business and its cost to the size of your market.
Identify other products or services that you could include alongside the original in order to increase market size.
Consider ways to substantially change your product or service in order to increase your market size.
Shelve your idea; perhaps the market will increase in future.
Which item below represents a non-price strategy?
Multiple Choice
Sending thank you cards to your customers thanking them for their loyalty.
Improving the customer service.
All of the above.
Offering a one-year money back guarantee.
Chapter 10 Solutions
Managerial Economics: A Problem Solving Approach
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- The demand for John Cena figures is P = 18 - Q. The figures will cost $4 to order. To stock Cena figures, other figures from the shelves will have to be removed and the average profit on those figures is $2. At what price should you sell the Cena figures for? Enter as a value.arrow_forwardYour firm has a new strategy that will make its established product obsolete. However, it will take a year before you are ready to implement the new strategy. If you announce your plan in advance, profits will disappear because many customers will delay purchase until the new product is released. If you don't announce the new plan, customers will continue to buy the established product, but others may end up not doing business with you in the long run. What would you decide to do?arrow_forwardIf you do not have a large market for your product or service, what should you do to be sure it retains its value? a)Make sure to scale your business and its cost to the size of your market. b)Identify other products or services that you could include alongside the original in order to increase market size. c)Consider ways to substantially change your product or service in order to increase your market size. d)Shelve your idea; perhaps the market will increase in future.arrow_forward
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- Choose the letter/s of the correct answer/s. The price of a product is expressed as p, PHP = 10 – 28D where D is the demand. Which of the following correctlyexpresses the total revenue?A. 10 − 28D2 B. 28D = 10 C. 10D − 28D D. 10D −28D2arrow_forwardThe demand for the book is P = 89 - 2Q. A bookstore can order copies that will cost $5. If the bookstore orders 3 books, what is the total profit? Enter as a value. ◄ Previous Next ▸arrow_forwardYou are running a chocolate factory and need to decide on the price to sell the chocolate as well as the quantity to produce. Demand curve; Q = 8.5 - 0.05 * P. The cost curve is C = 100 + 38Q. The business is a profit maximizer. 1) What is the best price to charge each week? 2) What is the best quantity to make each week? 3) What are the expected profits Is it possible to get this in an excel with equation formulasarrow_forward
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