7.1 Prices are economic stop lights. They direct buying and selling. When prices become sticky: The market is less efficient in allocating resources.
|
|
- Shonda Moore
- 6 years ago
- Views:
Transcription
1 7.1 Prices are economic stop lights. They direct buying and selling. When prices become sticky: The market is less efficient in allocating resources. When demand increases faster than supply increases: Price increases. What is the consequence of increased general global demand that is only somewhat answered by increased supply? General price increases. When supply decreases faster than demand decreases: Price stays the same. When supply increases faster than demand increases: Price decreases. In which of the following continents do prices change more often? North America. The long-term solution to the high price of gasoline is: Increase the price further through government taxation. When demand decreases faster than supply decreases: Price decreases.
2 If you face fierce competition the short-term effect on sales of a price reduction will be: Greater than the long-term effect of a price reduction. 7.2 Which of the following decreases consumer price sensitivity? When the purchase is a necessity. Which of the following does the Price Setting worksheet analysis do? What can you learn from the Price Change worksheet? The Price Change worksheet uses the "Wisdom of the Crowd" by: Using the forecasts of everyone involved. If the contribution margin percentage is currently 40 percent and a price-reduction of 20 percent is proposed, what will sales have to increase by for the price-reduction to be worthwhile? 100% What is gross contribution? Quantity sold times contribution. Which of the following scenarios best describe a high negative price elasticity? Both A and C Which of the following price points should markets focus on? Both supply-curve and demand-curve kink points. Which of the following increases consumer price sensitivity? When prices can be searched on the Internet. Kinks in the demand curve for a particular product are more likely to occur when: Both B and C occur. Optimal price is very likely at one of the demand-curve kinks because it produces: The highest gross contribution.
3 7.3 An enterprising manufacturer of filing-cabinet hanging folders makes them in several bright, modern colors rather than the standard, dull, cardboard green. Which of the following reasons contributed to the great success of this very successful and very profitable quality-added product feature and product positioning differentiation? The different colors are more aesthetically attractive. The folders are made of recycled paper: No The extra cost is only a cent or so per file: Customers have to keep a larger inventory of files: The colors can be used to organize files: If all dairy farmers adopt Supercowchow and overall supply increases by 10 percent, which of the following will happen to the long-term income of the farmers who adopted it first? Their long-term income compared to their short-term income will: Decrease. Which of the following would the manufacturer find to be the lowest acceptable price for the new Supercowchow per sack? $70 Dell computer sets the price of its added-value note-pad features based on: Both the cost and the perceived value. Which of the following do you think is the fairest price for the Supercowchow? $80 When administered according to a careful feeding schedule, a premium nutritional additive called Supercowchow increases milk production earnings in a dairy herd to $1,050,000 from $1,000,000 using the standard Cowchow that costs $50 a sack for the farmer to buy. The farmer uses 1,000 sacks of Cowchow a year. Supercowchow costs $10 per sack extra to manufacture and the farmer would use 1,000 sacks of it. Thus the added-value of Supercowchow over regular Cowchow is $50,000/1,000 sacks which is $50 per sack. Which of the following would be the farmers' highest acceptable price for the new Supercowchow per sack? $90
4 A price skimming strategy: Is more likely to attract competitors. 7.4 A penetration pricing strategy can be attractive when: When the market has distinguishable segments that vary in their degree of price sensitivity, the best pricing strategy to use when initially introducing a new product is likely: Price skimming. What kind of pricing strategies have Toyota and Honda done over the last 50 years in the United States? Which of the following products can price skimming strategy be applied with? Lower introductory prices can lead to higher per unit margins by: Increasing sales volume and achieving economies of scale and sales efficiencies. According to the module which of the following products/services uses a premium pricing strategy? Extended appliance warranties of Best Buy. Consistently pricing your product below your average cost: Both A and C
5 7.5 A tied pricing contract: Is illegal in the United States. Volume discounting: Is a form of price discrimination. Electric utilities have developed to compete in the home heating market segment. Usage segment discounting What impact(s) might occur when off-peak demand pricing is applied? Reducing the annual overall contribution margin. Price shading: Allows sellers to lower prices for buyers who are knowledgeable about competitive suppliers. In a market where price shading is relatively common, sellers who do not shade their prices: May be perceived as uncooperative and unreasonable. Payment terms: Price discrimination: Results when a seller differentially adapts prices to various buyers. A method to reduce price shading's potential to lower profits is to: Base commissions on profits and not sales volume. A movie theater that prices afternoon showings lower than more popular evening showings: Does so because of lower demand and it cannot store its excess seating capacity.
6 7.6 A negative aspect of price promotions in a mature market is: That they can reduce the degree of brand loyalty in the market. What can be done to discourage price promotions? Operate close to production capacity. Which of the following statements is true? In the fashion world promotions running late in the season are designed to reduce inventory carrying costs and the risk of fashion obsolescence. Research suggests that compared to price promotions consumers may have a more positive feeling about: Coupons and rebates. Which of the following scenarios described in the price module best represents the advantage of differentiation over price promotion? What are the possible underlying implications when companies rely on price promotions to sell their mature product? Price promotions: Have strong reinforcing effects and train shoppers to become deal-seeking shoppers Many price discounts are wasted because: B, C and D
7 7.7 The most efficient transfer price is: The market price of the goods and services that the subsidiary faces. Transfer prices are most often adjusted because of: Tax implications. Transfer pricing is: The price you charge another unit or subsidiary of your company for a product or service. It is likely that the internal buyer will suggest that the transfer price should be the market price: Less the cost in sales-commissions and distribution that result from selling to a subsidiary (an internal buyer). In addition to economic efficiency and tax arguments most of the rest of transfer pricing is about: Which of the following statements is true? Both B and C
Chapter 5: Supply Section 3
Chapter 5: Supply Section 3 Objectives 1. Explain how factors such as input costs create changes in supply. 2. Identify three ways that the government can influence the supply of goods. 3. Analyze other
More informationPricing Concepts. Essentials of 6 Marketing Lamb, Hair, McDaniel CHAPTER 19. Designed by Eric Brengle B-books, Ltd.
Pricing Concepts CHAPTER 19 Designed by Eric Brengle B-books, Ltd. Essentials of 6 Marketing Lamb, Hair, McDaniel Prepared by Deborah Baker Texas Christian University THE IMPORTANCE OF PRICE Discuss the
More informationChapter 10 & 11. Pricing. Course: Mkt 202 Lecturer: Emran Mohammad
Chapter 10 & 11 Pricing Course: Mkt 202 Lecturer: Emran Mohammad Pricing Ch 10-2 The amount of money charged for a product or service; the sum of the values that customers exchange for the benefits of
More informationMarket Structures. Perfect competition Monopolistic Competition Oligopoly Monopoly
Market Structures The classification of market structures can be arranged along a continuum, ranging from perfect competition, the most competitive market, to monopoly, the lease competitive: Perfect competition
More informationChapter 5: Supply Section 1
Chapter 5: Supply Section 1 Key Terms supply: the amount of goods available law of supply: producers offer more of a good as its price increases and less as its price falls quantity supplied: the amount
More information15/02/ Developing Pricing Strategies and Programs. Chapter Questions. Synonyms for Price
1 14 Developing Pricing Strategies and Programs Chapter Questions How do consumers process and evaluate prices? How should a company set prices initially for products or services? How should a company
More informationEdexcel (B) Economics A-level
Edexcel (B) Economics A-level Theme 4: Making Markets Work 4.1 Competition and Market Power 4.1.1 Spectrum of competition Notes Characteristics of monopoly, oligopoly, imperfect and perfect competition
More informationPricing with Perfect Competition. Advanced Pricing Strategies. Markup Pricing. Pricing with Market Power
Pricing with Perfect Competition Advanced Pricing Strategies Herbert Stocker herbert.stocker@uibk.ac.at Institute of International Studies University of Ramkhamhaeng & Department of Economics University
More informationMKT501- Marketing Management
MKT501- Marketing Management Question No: 1 ( Marks: 1 ) - Please choose one A market leader firm can expand the total market through: Decreasing distribution of the product Introducing the new usage of
More information2, 1 EE CONOMIC SYSTEMS
2, 1 For use with textbook pages 31 38 EE CONOMIC SYSTEMS KEY TERMS economic system The way in which a nation uses its resources to satisfy its people s needs and wants (page 31) traditional economy A
More informationP2 Performance Management
Performance Pillar P2 Performance Management Examiner s Answers SECTION A Answer to Question One (a) (i) The optimum selling price occurs where marginal cost = marginal revenue. Marginal cost is assumed
More informationChapter 15: Pricing and the Revenue Management. utdallas.edu/~metin
Chapter 15: Pricing and the Revenue Management 1 Outline The Role of RM (Revenue Management) in the SCs RM for Multiple Customer Segments RM for Perishable Assets RM for Seasonable Demand RM for Bulk and
More informationSALT Whitepapers REBATES. Definition
Business Strategists Certified Public Accountants Echelbarger, Himebaugh, Tamm & Co., P.C. SALT Whitepapers The application of the sales tax can become confused on items which carry a refund, discounted
More informationBusiness Studies 2008 HIGHER SCHOOL CERTIFICATE EXAMINATION. Total marks 100. Section I Pages 2 6
2008 HIGHER SCHOOL CERTIFICATE EXAMINATION Business Studies Total marks 100 Section I Pages 2 6 General Instructions Reading time 5 minutes Working time 3 hours Write using black or blue pen Draw diagrams
More informationPerfect Competition. Chapter 7 Section Main Menu
Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the marketplace? What are prices and output like in a perfectly competitive market?
More informationChapter 14 Perfectly competitive Market
Chapter 14 Perfectly competitive Market But first lets look at this Profit Maximization Profit Maximization This occurs where marginal revenue (MR) = marginal cost (MC). MR = MC Marginal revenue is the
More informationChapter 10 Lecture Notes
Chapter 10 Lecture Notes I. Pure Monopoly: An Introduction A. Definition: Pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes. B. There are
More informationPrice Discrimination. It is important to stress that charging different prices for similar goods is not pure price discrimination.
What is price discrimination? Price discrimination or yield management occurs when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated
More informationLearning Objectives. Learning Objectives 17/03/2016. Chapter 16 Sales Promotion
Chapter 16 Sales Promotion Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives To
More informationLecture 6 Pricing with Market Power
Lecture 6 Pricing with Market Power 1 Pricing with Market Power Market Power refers to the ability of a firm to set its own price, as opposed to firms that are price takers and take market price as given.
More informationPerfect Competition Chapter 7 Section 1
Perfect Competition Chapter 7 Section 1 Four Conditions of Perfect Perfect competition is a market structure in which a large number of firms all produce the same product. Many buyers and sellers Identical
More informationBonus Packs. Bonus Packs
Bonus Packs Extra quantities of a product that are offered for the same price Alternative to price-off deals Many bonus-packs will be purchased by regular customers who would have purchased the brand anyway
More informationAssignment 2: Supply and Demand
Assignment 2: Supply and Demand (Reference: Mankiw and Taylor, Chapters 4, 5, 6) Multiple Choice 1. Suppose that a large dairy farmer is able to raise the market price of milk by restricting milk supply
More informationEco 202 Exam 2 Spring 2014
Eco 202 Exam 2 Spring 2014 PLEASE ANSWER 50 OF THE FOLLOWING QUESTIONS. 1. Jon Brooks quit his job in a bicycle shop, where he earned $15,000 per year, to become a graduate student in economics. At the
More informationDeveloping a Successful Marketing Strategy and Plan
Developing a Successful Marketing Strategy and Plan Page 1 Key Elements for Success Vision. Marketing Strategy. Appropriate Tactics. Execution. Page 2 Marketing Mix Product value added product. Promotion
More informationTopic: Shares, Shareholders and Share Prices 3.1 What is Business?
Topic: Shares, Shareholders and Share Prices 3.1 What is Business? What You Need to Know What are shares and shareholdings? Share prices how determined and why they change Market capitalisation the value
More informationChapter 14 Global Marketing Decisions: Sales Promotion, Personal Selling, Special Forms of Marketing Communication Prentice Hall 14-1
Chapter 14 Global Marketing Decisions: Sales Promotion, Personal Selling, Special Forms of Marketing Communication 2005 Prentice Hall 14-1 Sales Promotion Sales promotion refers to any paid consumer or
More informationOCR Economics A-level
OCR Economics A-level Microeconomics Topic 2: How Competitive Markets Work 2.3 Supply and demand, and the interaction of markets Notes A market is created when buyers and sellers interact. A sub-market
More informationDownloaded for free from 1
Micro Chapter 6 -price ceiling or price cap: government regulation that makes it illegal to charge a price higher then a specified level -effects of the price cap on the market depend on whether the ceiling
More informationMARKET STRUCTURES. Economics Marshall High School Mr. Cline Unit Two FC
MARKET STRUCTURES Economics Marshall High School Mr. Cline Unit Two FC Price Discrimination Our previous example assumed that the monopolist must charge the same price to all consumers. But in some cases,
More informationAggregate Planning and S&OP
Aggregate Planning and S&OP 13 OUTLINE Global Company Profile: Frito-Lay The Planning Process Sales and Operations Planning The Nature of Aggregate Planning Aggregate Planning Strategies 1 OUTLINE - CONTINUED
More informationMonopoly. Cost. Average total cost. Quantity of Output
While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if... it is the sole seller of its product. its product does not have close substitutes. The
More information7 The Optimum of Monopoly, Price Discrimination
Microeconomics I - Lecture #7, March 31, 2009 7 The Optimum of Monopoly, Price Discrimination 7.1 Monopoly Up to now we have analyzed the behavior of a competitive industry, a market structure that is
More informationReed Supermarkets: A New Wave of Competitors. Presented by: Prianka Jhingan Sandra Gaganiaras
Reed Supermarkets: A New Wave of Competitors Presented by: Prianka Jhingan Sandra Gaganiaras Reed must eliminate dollar sales and enhance the customer experience to reinforce its position in the market.
More informationENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING 2 MARKS
ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING 2 MARKS 1. What is managerial economics? It is the integration of economic theory with business practice for the purpose of facilitating decision making and
More informationMerchandise Forecasting and Budgeting
Chapter - 3 Merchandise Forecasting and Budgeting ============================================================= The Process of Merchandise Planning Customers visiting a retail shop, very often, know what
More informationChapter 8. Price Analytics
Chapter 8. Analytics Disclaimer: All images such as logos, photos, etc. used in this presentation are the property of their respective copyright owners and are used here for educational purposes only Some
More informationWhat Drives Dairy Purchases at Retail Today and Tomorrow? Elite Producer Business Conference November 9, 2010
What Drives Dairy Purchases at Retail Today and Tomorrow? Elite Producer Business Conference November 9, 2010 Session Goals I. Provide an overview of the current shopper and retail environment II. Demonstrate
More informationEconS 301 Intermediate Microeconomics Review Session #9 Chapter 12: Capturing Surplus
EconS 30 Intermediate Microeconomics Review Session #9 Chapter : Capturing Surplus. With second-degree price discrimination a) The firm tries to price each unit at the consumer s reservation price. b)
More informationChapter 6: Combining Supply and Demand
SCHS SOCIAL STUDIES What you need to know UNIT TWO 1. Explain how supply and demand create balance in the marketplace 2. Explain how a market reacts to a fall in supply by moving to a new equilibrium 3.
More informationChapter 1 Introduction to Pricing Techniques
Chapter 1 Introduction to Pricing Techniques 1.1 Services, Booking Systems, and Consumer Value 2 1.1.1 Service definitions 1.1.2 Dynamic reservation systems 1.1.3 Consumer value 1.2 Overview of Pricing
More informationCost Accounting. Multiple Choice Questions:
Multiple Choice Questions: 1- The Value Chain a- Involves external companies as well as internal activities. b- Is the sequence of business functions in which customer usefulness is added to products or
More informationCelerant Command Retail Multi-Channel Team Sales in ONE System
Celerant Command Retail Multi-Channel Team Sales in ONE System Celerant Technology introduces Celerant Command, a real-time software solution that manages all areas of sporting goods dealers with one,
More informationiv. The monopolist will receive economic profits as long as price is greater than the average total cost
Chapter 15: Monopoly (Lecture Outline) -------------------------------------------------------------------------------------------------------------------------- Monopolies have no close competitors and,
More informationMARKETING MANAGEMENT 12 th edition. 14 Developing Pricing Strategies and Programs
MARKETING MANAGEMENT 12 th edition 14 Developing Pricing Strategies and Programs Kotler Keller Chapter Questions How do consumers process and evaluate prices? How should a company set prices initially
More informationSection I (20 questions; 1 mark each)
Foundation Course in Managerial Economics- Solution Set- 1 Final Examination Marks- 100 Section I (20 questions; 1 mark each) 1. Which of the following statements is not true? a. Societies face an important
More informationMarketing Metrics and Marketing Profitability
CHAPTER 2 Marketing Metrics and Marketing Profitability Introductory Exercise FedEx measures customer satisfaction monthly but measures its service quality daily with a process metric that tracks the top
More informationCalculate the total variable cost per unit. (2 marks) Calculate the selling price of the product that will maximise the company s profits.
SECTION A 50 MARKS Question One (a) (i) (ii) Calculate the total variable cost per unit. (2 marks) Calculate the selling price of the product that will maximise the company s profits. (4 marks) (i) The
More informationMGT301 - Principles of Marketing Final Paper of Feb 2010
MGT301 - Principles of Marketing Final Paper of Feb 2010 Question No: 1 ( Marks: 1 ) - Please choose one Which one of the following option is NOT a benefit for buyer with E-commerce? Convenience Easy and
More informationFuture revenues A$ A$6 500 Deduct future costs Operating income A$8 500 A$6 500
Chapter 8 DECISION MAKING AND RELEVANT INFORMATION 8-16 (20 min.) Disposal of assets 1. This is an unfortunate situation, yet the A$78 000 costs are irrelevant regarding the decision to re-machine or sold
More informationAIPMM CPM/CPMM Certification Examination GLOSSARY OF TERMS
Learn. Apply. Lead AIPMM CPM/CPMM Certification Examination Developed by the Association for International Product Marketing and Management (www.aipmm.com), the Certified Product Manager and Certified
More informationThe Product or Service - Outline
The Product or Service Outline 1) Description of Products/ Services a) Description i) Orientation ii) Products/ Services sold iii) Detailed description (1) core product/ service (2) branding (3) packaging/
More informationCHAPTER 8: SECTION 1 A Perfectly Competitive Market
CHAPTER 8: SECTION 1 A Perfectly Competitive Market Four Types of Markets A market structure is the setting in which a seller finds itself. Market structures are defined by their characteristics. Those
More informationCosts to Produce Milk in Illinois 2003
Costs to Produce Milk in Illinois 2003 University of Illinois Farm Business Management Resources FBM-0160 Costs to Produce Milk in Illinois 2003 Dale H. Lattz Extension Specialist, Farm Management Department
More informationExtra Credit. Student:
Extra Credit Student: 1. A glass company making windows for houses also makes windows for other things (cars, boats, planes, etc.). We would expect its supply curve for house windows to be: A. Dependent
More informationWelfare economics part 2 (producer surplus) Application of welfare economics: The Costs of Taxation & International Trade
Welfare economics part 2 (producer surplus) Application of welfare economics: The Costs of Taxation & International Trade Dr. Anna Kowalska-Pyzalska Department of Operations Research Presentation is based
More informationMarketing: Managing Profitable Customer Relationships
Marketing: Managing Profitable Customer Relationships Chapter 1 Learning Goals 1. Define marketing and the marketing process. 2. Explain the importance of understanding customers and identify the five
More information13 C H A P T E R O U T L I N E
PEARSON PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER Prepared by: Fernando Quijano w/shelly Tefft 2of 37 PART III MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT Monopoly
More informationInstructions: must Repeat this answer on lines 37, 38 and 39. Questions:
Final Exam Student Name: Microeconomics, several versions Early May, 2011 Instructions: I) On your Scantron card you must print three things: 1) Full name clearly; 2) Day and time of your section (for
More informationChapter 16 Pricing Concepts and Strategies
Chapter 16 Pricing Concepts and Strategies MULTIPLE CHOICE 1 What does the exchange value of a product define? a its worth b its price c its value d its funds ANS: B REF: 502 2 What is the purpose of the
More informationSUBJ SCORE # Version D: Page 1 of 9. (signature) 2. Please write your name and GU ID carefully and legibly at the top of this page.
SUBJ SCORE # Version D: Page 1 of 9 Economics 001 NAME Professor Levinson GU ID # Midterm #2 November 12, 2012 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.
More informationMultiple Choice Identify the letter of the choice that best completes the statement or answers the question.
Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?
More informationAP Microeconomics Chapter 11 Outline
I. Learning Objectives In this chapter students should learn: A. The characteristics of pure monopoly. B. How a pure monopoly sets its profit-maximizing output and price. C. The economic effects of monopoly.
More informationThe Management of Marketing Profit: An Investment Perspective
The Management of Marketing Profit: An Investment Perspective Draft of Chapter 1: A Philosophy of Competition and An Investment in Customer Value Ted Mitchell, May 1 2015 Learning Objectives for Chapter
More informationB292 Revision Part 2 EX (6)
EX (6) B292 Revision Part 2 My Tablet Inc. specializes in Tablets. The results of the company's operations during 2013 are given in the following table. All units produced during the year were sold. (Ignore
More informationChapter 6 Elasticity: The Responsiveness of Demand and Supply
hapter 6 Elasticity: The Responsiveness of emand and Supply 1 Price elasticity of demand measures: how responsive to price changes suppliers are. how responsive sales are to changes in the price of a related
More informationMonopoly CHAPTER. Goals. Outcomes
CHAPTER 15 Monopoly Goals in this chapter you will Learn why some markets have only one seller Analyze how a monopoly determines the quantity to produce and the price to charge See how the monopoly s decisions
More informationEconomics 110 Midterm #2 Practice Multiple Choice Qs Spring 2014
Midterm #2 Practice Multiple Choice Questions: Elasticity is a. a measure of how much buyers and sellers respond to changes in market conditions. b. the study of how the allocation of resources affects
More informationSupply and Demand. Objective 8.04
Supply and Demand Objective 8.04 Supply and Demand Pages 258-259 259 copy bold terms and give a definition or description of each. Page 261 Copy the questions Worksheet A-2A 1. Surplus When the amount
More informationName: Period: 5. Monday Tuesday Wednesday Thursday Friday 27 E. *Mandatory Fair Meeting 6pm. Assignment Your Score Total Points Possible
Ms. King BishopAgEd.weebly.com Name: Period: 5 Week: 21 22 Dates: 1/18 2/5 Unit: How Markets Work Monday Tuesday Wednesday Thursday Friday 18 No School 19 E 20 O *Basic Principles of Free Market *Types
More informationSpecial Pricing Practices. Managerial Economics: Economic Tools for Today s Decision Makers, 4/e
Special Pricing Practices Chapter 11 Managerial Economics: Economic Tools for Today s Decision Makers, 4/e By Paul Keat and Philip Young Special Pricing Policies Introduction Cartel Arrangements Revenue
More informationChapter: 8 FINDINGS, CONCLUSION & RECOMMENDATION
Chapter: 8 FINDINGS, CONCLUSION & RECOMMENDATION 8.1 Introduction to Chapter The study on Marketing Strategies of Electronics Industry with Special Reference to Electronics Corporation of India Limited
More informationPRICING. Quantity demanded is the number of the firm s product customers wish to purchase. What affects the quantity demanded?
PRICING So far we have supposed perfect competition: the firm cannot affect the price. Whatever the firm produces is sold at the world market price. Most commodity businesses are highly competitive: regardless
More informationHow to Grow SaaS Revenue, Profits and Market Share with Use-Appropriate Software Licensing and Pricing A SaaS Business Models White Paper
WHITE PAPER How to Grow SaaS Revenue, Profits and Market Share with Use-Appropriate Software Licensing and Pricing A SaaS Business Models White Paper How to Grow SaaS Revenue, Profits and Market Share
More informationECON 202 2/13/2009. Pure Monopoly Characteristics. Chapter 22 Pure Monopoly
ECON 202 Chapter 22 Pure Monopoly Pure Monopoly Exists when a single firm is the sole producer of a product for which there are no close substitutes. There are a number of products where the producers
More informationMonopoly. While a competitive firm is a price taker, a monopoly firm is a price maker.
Monopoly Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker. Monopoly A firm is considered a monopoly if... it is the sole seller of its product. its product does not
More informationAssignment Guide: Marketing Mix Case study- Ben Sherman
Assignment Guide: Marketing Mix Case study- Ben Sherman Table of Content Summary/ Abstract...2 Introduction... 2 The Understanding of Marketing Mix: 4 P s and 7 P s...2 Product...3 Place... 3 Price...3
More informationCosts to Produce Milk in Illinois 2016
Costs to Produce Milk in Illinois 2016 Costs to Produce Milk in Illinois 2016 University of Illinois Farm Business Management Resources FBM-0160 Brandy M. Krapf, Dwight D. Raab, and Bradley L. Zwilling
More informationChapter 17. promotional concepts and strategies. Section 17.1 The Promotional Mix. Section 17.2 Types of Promotion
Chapter 17 promotional concepts and strategies Section 17.1 Section 17.2 Types of Promotion Section 17.1 IMAGINE What might happen if business did not promote their products? Section 17.1 Explain the role
More information1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States.
1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States. c. the effect of income redistribution on work effort. d. how the allocation of
More informationMonopoly. Chapter 15
Monopoly Chapter 15 Monopoly While a competitive firm is a price taker, a monopoly firm is a price maker. Monopoly u A firm is considered a monopoly if... it is the sole seller of its product. its product
More informationTotal Cost in Determining Price
Exhibit 16.1 Total Cost in Determining Price Total Sales Revenue = Reflection of sales volume and price Make a little on a lot OR Make a lot on a little How Customer Demand Affects Pricing Elasticity of
More informationEdexcel (A) Economics A-level
Edexcel (A) Economics A-level Theme 3: Business Behaviour & the Labour Market 3.4 Market Structures 3.4.5 Monopoly Notes Characteristics of monopoly: Monopolies can be characterised by: o Profit maximisation.
More informationPRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER. PEARSON Prepared by: Fernando Quijano w/shelly Tefft
PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Prepared by: Fernando Quijano w/shelly Tefft 2 of 25 PART III MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT Monopoly
More informationGlobal Pricing for International Markets
Chapter 18 Global Pricing for International Markets McGraw-Hill/Irwin International Marketing, 13/e Modular: Afjal Hossain Lecturer, Department of Marketing PSTU 2-3 Chapter Learning Objectives Components
More informationECON 115. Industrial Organization
ECON 115 Industrial Organization 1. Linear (3rd Degree) Price Discrimination First Hour QUIZ Second Hour Introduction to Price Discrimination Third-degree price discrimination Two Rules Examples of price
More informationUnit 4: Imperfect Competition
Unit 4: Imperfect Competition 1 Monopoly 2 Characteristics of Monopolies 3 5 Characteristics of a Monopoly 1. Single Seller One Firm controls the vast majority of a market The Firm IS the Industry 2. Unique
More informationPerfectly Competitive Supply. Chapter 6. Learning Objectives
Perfectly Competitive Supply Chapter 6 McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives 1.Explain how opportunity cost is related to the supply
More informationTopic 5 External Factors. Higher Business Management
Topic 5 External Factors Higher Business Management 1 Learning Intentions / Success Criteria Learning Intentions External factors Success Criteria Learners should be aware of the impact that external factors
More informationChapter Summary and Learning Objectives
CHAPTER 11 Firms in Perfectly Competitive Markets Chapter Summary and Learning Objectives 11.1 Perfectly Competitive Markets (pages 369 371) Explain what a perfectly competitive market is and why a perfect
More informationMonopoly Behavior or Price Discrimination Chapter 25
Monopoly Behavior or Price Discrimination Chapter 25 monoply.gif (GIF Image, 289x289 pixels) http://i4.photobucket.com/albums/y144/alwayswondering1/monoply.gif?... Announcement Pre-midterm OH: Grossman
More informationSyllabus item: 57 Weight: 3
1.5 Theory of the firm and its market structures - Monopoly Syllabus item: 57 Weight: 3 Main idea 1 Monopoly: - Only one firm producing the product (Firm = industry) - Barriers to entry or exit exists,
More informationCompetitive Markets. Jeffrey Ely. January 13, This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License.
January 13, 2010 This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License. Profit Maximizing Auctions Last time we saw that a profit maximizing seller will choose
More informationHS Marketing Concepts Business and Technology
Course Marketing Concepts is an instructional program designed for students who are interested in a career in the field of marketing and management. This course includes instructional areas designed to
More informationRevenue from Contracts with Customers
Revenue from Contracts with Customers The standard is final A comprehensive look at the new revenue model No. US2014-01 (supplement) June 18, 2014 What s inside: Overview... 1 Right of return... 2 Sell-through
More information14.01 Fall 2010 Problem Set 6 Solutions
4.0 Fall 00 Problem Set 6 Solutions. (0 points) In Cambridge, shoppers can buy apples from two sources: a local orchard, and a store that ships apples from out of state. The orchard can produce up to 50
More informationCONTENTS. Introduction to the Series. 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply Elasticities 37
CONTENTS Introduction to the Series iv 1 Introduction to Economics 5 2 Competitive Markets, Demand and Supply 17 3 Elasticities 37 4 Government Intervention in Markets 44 5 Market Failure 53 6 Costs of
More informationJANUARY EXAMINATIONS 2005
No. of Pages: (A) 7 No. of Questions: 26 EC1000A ' JANUARY EXAMINATIONS 2005 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper
More informationChapter 10: Monopoly
Chapter 10: Monopoly Answers to Study Exercise Question 1 a) horizontal; downward sloping b) marginal revenue; marginal cost; equals; is greater than c) greater than d) less than Question 2 a) Total revenue
More informationnot to be republished NCERT Chapter 6 Non-competitive Markets 6.1 SIMPLE MONOPOLY IN THE COMMODITY MARKET
Chapter 6 We recall that perfect competition was theorised as a market structure where both consumers and firms were price takers. The behaviour of the firm in such circumstances was described in the Chapter
More information