Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter 3, Problem 15PAA

You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for the Highlander is Q = 150,000 – 1.5P, what price should you charge in order to maximize revenues from sales of the Highlander?

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You are a division manager at Toyota. If your data analytics department estimates that the semiannual demand for the Highlander is Q = 350000 - 1.6P what price should you charge in order to maximize revenues from sales of the Highlander? $___?
Suppose you are in charge of pricing at your company and you wish to increase revenues from your product line. Your company's chief economist informs you that the price elasticity of demand of your product line is estimated to be E = - 1.1 Based on this information, what would you do?
you own a small cineplex theater with 200 seats. the demand for seats is Q=3000-20P. you are charging rm6.50 per ticket and selling tickets to 160 people. your costs are fixed at rm125 and do not depend on the number of people attending. should you cut your price to fill the theatee? explain. what other pricing policies might you use to increase your profits?
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