Select a company that uses (or has used) dynamic pricing. Using the Library, the Internet, and your course materials, briefly explain how the company uses dynamic pricing. Discuss the benefits and drawbacks of dynamic pricing for that particular company. Conclude with a summary of your findings (Perloff, 2007). In your own wor
The problem begins with a non-linear two-variable demand function. I review the definition of convexity regarding the second derivative test then solve the first and second derivatives to show that the function is convex. I plot the function out in two dimensional space as well.
The demand function for Sprint shoes is given by P = 24q + 1200/ q+ 20 q>0 Comment on whether this demand function is concave, convex, strictly concave, or strictly convex. Explain why and draw a rough diagram for it.
A firm has a cost function given by the following: c(w1, w2, y)= w1w2y^2/(w1+w2) where the wi's are the prices of the factors (inputs) x1 and x2 respectively, and y is output. a) Is this a legitimate cost function? b) Find the firm's production function, y= f(x1, x2). c) From the cost function derive the firm's
Attempts are being made to develop a biodegradable plastic using agricultural produce such as potatoes. If these attempts are successful, what will happen to the equilibrium price and quantity of potatoes?
The Ali Baba Co., is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q= 112,000 - 500P + 5M Where Q = number of carpets, P = price of carpets (dollars per unit), and M = consumers' income per capita. The estimate average variable cost function for Ali Baba's carpets is AVC
Economics: Given the demand for and the supply of a commodity that you yourself consume on a regular basis, i.e., I might choose coffee, what price will be the equilibrium price of this commodity?
1. Given the demand for and the supply of a commodity that you yourself consume on a regular basis, i.e., I might choose coffee, what price will be the equilibrium price of this commodity? Explain why this price will tend to prevail in the market and why higher (lower) prices, if the do exist temporarily, will tend to fal
I cannot seem to answer questions 2, 3 or 4. Please help
Please see the attachment to find the question pertaining to the demand and supply curves for the market for luxury sports cars.
Please see attached. thanks
As the price of good X increases from $5 to $8, quantity demanded falls from 100 to 80. Based upon this information we can conclude that the demand for X is inelastic. True or false?
I need help with this question. 2. As the price of good X increases from $5 to $8, quantity demanded falls from 100 to 80. Based upon this information we can conclude that the demand for X is inelastic. True or false? Justify your answer
Organization/Industry Overview - OPEC Organization of the Petroleum Exporting Countries operates in.
I have the following task, and I need some help getting started: Write a 400 word summary in which the market in which OPEC Organization of the Petroleum Exporting Countries operates in.
Supply and Demand - 1.The demand for erasers (Q) is given as follows: Q = 240 - 4Pe + 2M + 1Pb + 1A , where ... (Please see the attached file)
1.The demand for erasers (Q) is given as follows: Q = 240 - 4Pe + 2M + 1Pb + 1A , where Pe is the price of erasers, M is the level of income, Pb is the price of another (related) good, A is the level of advertising. Suppose that Pe = 10, Pb = 10, A = 10, and M = 20. a. What is the price elasticity of demand of erasers?
Is the agricultural industry perfectly competitive? Use economic rationale to explain why or why not?
Problems: 1. Explain how opportunity cost is related to the producer's supply curve. 2. Explain why the minimum price necessary rises as the producer produces more output. 3. Define profit. 4. What are the assumptions of a perfectly competitive market. 5. Describe the demand curve faced by the individual firm. D
Consider the following model of a market Qd = b0 + b1 P Qs = a0 + a1 P where Qd and Qs represent quantities demanded and supplied,P is price, and it is assumed that b0 >0, b1<0, b0 > a0, a1>0 and b0 a1 > b1 a0 . i)Find the reduced form solutions for equilibrium price and quantity. ii)Suppose a
Please discuss the price elasticity of demand and productivity (considering the law of diminishing return) for Pepsi.
Pricing and Profits: Suppose a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $20 for a pair of Levis Jeans, and a low-end type customer that are willing to pay a price of $13 for the same pair of jeans. Your supplier provided you with the jeans at $10 each and your extra costs are calculated at $1 per jeans. Your survey of your customers for jeans tells you that 50% of your customers are of the high end type and 50% are of the low end type. 1. If you decided to price high, what would be your expected profits per unit? 2. If you decided to price low, what would be your expected profits per unit? 3. Suppose your store attracts 1000 customers for these jeans: will you price high or low? And why?
Suppose a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $20 for a pair of Levis Jeans, and a low-end type customer that are willing to pay a price of $13 for the same pair of jeans. Your supplier provided y
Suppose gasoline and hybrid vehicles are substitutes. On the back, draw a graph indicating what will happen in the market for hybrid vehicles if the price of gasoline increases. Be sure to label your graph carefully, putting Price on the vertical axis and Quantity on the horizontal axis. You do not need to have actual numbers
Suppose the demand for guitars in State College is given by Qd = 9000 - 12P where Qd is the quantity demanded, and P is the price of guitars. Also, suppose the supply of guitars is given by Qs = 9P - 3852, where Qs is the quantity supplied of guitars. a)Calculate the equilibrium price of guitars and the equilibrium quantity
I have read the material for Chapter 3: "Supply and Demand" located in Michael Parkin's book titled, "Economics" (8th ed.). From my readings, I understand that as the prices rises supply increases. I also understand that as demand increases supply increases. However, I have trouble understanding the concepts concerning equilibri
For each of the following changes, show the effect on the supply curve, and state what will happen to market equilibrium price and quantity in the short run. a. The government requires pollution control filters that raise production costs. b. Wages of workers in this industry fall. c. There is an improvement in technology
The following relations describe monthly demand and supply for a computer support service catering to small businesses: Qd=3,000 -10 P Qs=-1,000+ 10P where Q is the number of businesses that need services and P is the monthly fee, in dollars. a) At what average monthly fee would demand equal zero? b) At what av
Joy's frozen yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of joy's various outlets, it was found that the demand curve follows this pattern. Q=200-300P+120 I +65T-250Ac+400 Aj Q= number of cups served I= per capita income T= average outdoor temperature Ac= competition's m
Several theories of direct investment highlight firm-- specific and/or home-country-specific advantages that enable a multinational corporation (MNC) to compete against host-country firms that typically are more familiar with the local business environment and do not have high costs associated with operating a project or subsidi
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX? Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor.
1. Suppose the government wishes to spur the production of soybeans for their potential usage in making biodiesel in order to reduce our dependence on foreign oil. Further suppose that the market demand and supply for soybean oil are given by QD = 100 - P and QS = 50 + .3P, where Q = barrels of soybean oil, and P = price per ba
Assume that the perfectly competitive widget industry consist of exactly 1,000 firms and is initially in a long run equilibrium. Assume that the widget industry is a constant cost industry and, for simplicity, assume that there is only one plant size available. Subsequently, a permanent increase in price of a gadget (a substitut
Suppose the demand function of a firm is given by Q + P - 200 = 0 and the cost function is given by TC = 12 + 3Q, where P is the price of the good and Q is the quantity produced. Find the largest quantity the firm can produce consistent with: i)breaking even: ii)making profits of 9232: iii)making a loss of 245.
The market for paper in a particular region in the U.S. is characterized by the following demand and supply functions
4. The market for paper in a particular region in the U.S. is characterized by the following demand and supply functions: P = 80 - 0.0005 QD P = -20 + 0.0005 QS where QD is the quantity demanded of paper in 100 pound (lb.) lots, QS is the quantity supplied of paper in 100 pound (lb.) lots, and P is
The Hanover Manufacturing Company believes that the demand curve for the product is: P= 5-Q, where P is the price of its product (in dollars) and Q is the number of millions of units of its product sold per day. It is currently charging a price of $1 per unit for its product. A. Evaluate the wisdom of the firm's pricing polic