Give two examples of publicly traded U.S. companies, make sure to name the companies, that have negatively impacted their businesses because of a pricing issue that led to mistrust between either the company and its customers

Give two examples of publicly traded U.S. companies, make sure to name the companies, that have negatively impacted their businesses because of a pricing issue that led to mistrust between either the company and its customers

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 3QFR

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Adverse Selection. This section on Amazon illustrates the case of adverse selection faced by Amazon. The vendors have more information about their performance than Amazon has. Explain how and why Amazon can use the customer reviews to control this problem.
1. Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell single-user access to the book for $46. a. Build a spreadsheet model to calculate the profit/loss for a given demand. What profit can be anticipated with a demand of 3,500 copies?b. Use a data table to vary demand from 1,000 to 6,000 in increments of 200 to assess the sensitivity of profit to demand.c. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,500 copies. d. Consider the following scenarios: Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Variable Cost/Book $6 $8 $12 $10 $11 Access Price $46 $50 $40 $50 $60 Demand 2,500 1,000 6,000 5,000 2,000 For each of these scenarios,…
Question 2 Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of how a large company should be managed, and controlled three quarters of the US car market. As at 2020, GM remains the biggest automaker by sales in the US, but it controls less than 20% of the market. For consumers, this level of competition has been wonderful; the level of choice when it comes to buying and leasing. For GM, as well as other large carmakers, having to operate in this realm isn't always fun, but if pressed they'll admit that there's something distinctly American about the market being hyper-competitive — and they might even acknowledge that having Germans and Japanese brands to do battle against helps them to improve their own capabilities. i. State what market structure existed in the automobile industry in the US in the 1950s. Illustrate and explain how equilibrium is determined. ii. Can excess profit be earned in this industry in the long run. Explain.…
Question 2 Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of how a large company should be managed, and controlled three quarters of the US car market. As at 2020, GM remains the biggest automaker by sales in the US, but it controls less than 20% of the market. For consumers, this level of competition has been wonderful; the level of choice when it comes to buying and leasing. For GM, as well as other large carmakers, having to operate in this realm isn't always fun, but if pressed they'll admit that there's something distinctly American about the market being hyper-competitive — and they might even acknowledge that having Germans and Japanese brands to do battle against helps them to improve their own capabilities. i. Illustrate how equilibrium is determined. NO HANDWRITING PLEASE. I HAVE A HARD TIME UNDERSTANDING.
12. Do you think it is possible to operate efficiently in a point that lies either above or below the Production Possibility Frontier (PPF)? 13. Define Monopoly and explain Barriers to Entry in the Monopoly Market. 14. Define Financial Intermediaries. Give two examples.
Property developers who build shopping malls like to have them “anchored” with the outlets of one or more famous national retail chains, like Target or Nordstrom. Having such “anchors” is obviously good for the mall developers because anchor stores bring a lot of foot traffic that can help generate sales for smaller stores that lack well-known national brands. But what’s in it for the national retail chains? Why become an anchor? Choose the best answer from the following list. a. The anchor stores want to make a credible threat against the developer. b. The anchor stores may feel there is a first-mover advantage to becoming one of only a few anchor stores at a new mall. c. The property developers are making empty threats to smaller stores. d. The smaller stores face a negative-sum game.
The accompanying graph depicts the market demand curve faced by a hypothetical cartel operating in the US. Use the graph to ighlight the area that represents the profits earned by the cartel. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
3.There are two competing Internet-based providers of medical information suitable for patients. ProPatient currently charges $150 per year to subscribers of its service,which helps patients learn more about their medical conditions. Its competitor, AskUs Health, currently charges $125 for a similar service. The current level of advertising by ProPatient is $2,500,000. ProPatient has tracked its volume of subscribers as a function of its price, the price of AskUs services, and of its own marketing expenditures designed to promote the service. The marketing department at ProPatient estimated its demand relationship based on these data. Here is the result: QP= 120,000 -900PP+ 400PA+.02M where QP= quantity of subscribers to ProPatient PP = price charged by ProPatient PA= price charged by AskUs Health MP= Marketing expenditures by ProPatient (all values of the independent variables are in dollars)ProPatient’s fixed cost to establish and maintain the business is $10,000,000 plus marketing…
3.There are two competing Internet-based providers of medical information suitable for patients. ProPatient currently charges $150 per year to subscribers of its service,which helps patients learn more about their medical conditions. Its competitor, AskUs Health, currently charges $125 for a similar service. The current level of advertising by ProPatient is $2,500,000. ProPatient has tracked its volume of subscribers as a function of its price, the price of AskUs services, and of its own marketing expenditures designed to promote the service. The marketing department at ProPatient estimated its demand relationship based on these data. Here is the result: QP= 120,000 -900PP+ 400PA+.02M where QP= quantity of subscribers to ProPatient PP = price charged by ProPatient PA= price charged by AskUs Health MP= Marketing expenditures by ProPatient (all values of the independent variables are in dollars)ProPatient’s fixed cost to establish and maintain the business is $10,000,000 plus marketing…
Suppose two of the three firms wished to do a merger, and become one giant firm. If you were in the role of Anti-Trust regulator, state one potential downside and one potential upside of the merger, and if on balance, you would you favor allowing or blocking this merger? (you may pick a real world industry to use as an example) Edit View Insert Format Tools Table BI U Tン: 12pt v Paragraph v MacBook Pro G Search or type URL & 5. E T G H. K D
Q5. The cross price elasticity of demand for Air-conditioning units & kilowatts of electricity is(-) 0.34, Coke & Pepsi is (+) 0.63 & between Mc Donald's burgers & Burger king burgers is (+) 0.82. If you were to explain Cross price elasticity, the above signs & it's various derivatives to a senior colleague in your company, how would you detail it & use some examples to validate your explanations.
SNJOXNJE1/a/NTE1MDg2Mzk5MDY1/details Open with Google Docs EOQ QUESTIONS Question one Determine optimal number of needles to order, given D = 2,000 units, S = $15 per order, H = $.50 per unit per year. Question Two Calculate the Total annual cost D= 1,500 units Q*=250 units S $10 per order N = 5 orders per year H= $.50 per unit per year T= 50 days. Question Three The following information is given to you D= 19,000 units/yr, H = $4/unit/year, S= $25/order. Calculate the EOQ, Annual holding cost and annual ordering cost. Question Four The following information is given to you, D= 200units/yr; H= $4/unit/lyear, Q= 60. Calculate the annual setupcost. Question Five 1/ 3 1. An auto parts supplier sells Hardy brand batteries to car dealers and auto mechanics. The Page