CONSULTING PROJECT Pricing and Production Decisions at PoolVac‚ Inc. PoolVac‚ Inc. manufactures and sells a single product called the “Sting Ray‚” which is a patent-protected automatic cleaning device for swimming pools. PoolVac’s Sting Ray accounts for 65 percent of total industry sales of automatic pool cleaners. Its closest competitor‚ Howard Industries‚ sells a competing pool cleaner that has captured about 18 percent of the market. Six other very small firms share the rest of the industry’s
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that profit equals revenue minus cost‚ and the marginal revenue - marginal cost method is based on the fact that total profit in a perfectly competitive market reaches its maximum point where marginal revenue equals marginal cost. Basic definitions there are two different types of costs every business has and these costs are: ➢ Fixed cost ➢ Variable cost. Fixed costs are something Shamrock would have to pay even if their production level is zero‚ and some of these costs are:
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* Question 1 0 out of 1 points | | | Duopolists A and B face the following demand curves: QA = 120 2PA + PB and QB = 120 2PB + PA. If both firms have zero marginal cost and they form a cartel‚ what is the profit-maximizing price and quantity?Answer | | | | | Correct Answer: | a. P = 60‚ Q = 120 | | | | | * Question 2 1 out of 1 points | | | Total surplus in a market is a measure of:Answer | | | | | Correct Answer: | c. social welfare created by the market
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the firm’s important functions and strategies ? 1. Selling need to know consumers purchasing behavior for example‚ what if the price increases: price elasticity of demand marketing/product positioning strategies Topics 3-5 lectures 2. Production Supply function/producers output decision how to produce? Firms output decision: Short run vs LR For example‚ should the firm continue producing even though loss? Topic 6. 3. Managerial Operation organisation aspect of the firm Institutional
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firms to attain economic profits rather than accounting profits. b. competition will force firms to produce surplus output‚ which drives up price. c. the average costs of production will increase. d. the average costs of production will decrease. ANSWER: c the average costs of production will increase. SECTION: 1 OBJECTIVE: 1 3. Sizable economic profits can persist over time under monopoly if the monopolist a. produces that output where average total cost is at
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annual production of market is met by ŞİŞECAM. Although there are no law and arbitration barriers to enter to the glass market‚ firms hesitate to enter since glass industry requires continuous production with high capacity and continuous investment and raw materials in Turkey are not in high quality and the amount of their reserves in Turkey are declining day by day‚ namely the industry is becoming more costly and risky. Furthermore‚ diminishing returns in the short-run increase marginal cost of
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14 Table Title Page 1.1 2003 Market Share of Canadian Cable Companies. 2 2.1 Canadian Cable Industry 5 2.2 Rogers Communications Incorporation 7 2.3 Shaw Communications Incorporation 8 2.4 Cogeco Cable Company 9 3.1 Marginal Private Benefit 11 3.2 Marginal Private Cost 11 3.3 Demand Schedule of the market 12 Figure Title Page 1.1 2003 Market Share of Canadian Cable Companies. 2 2.1 Conventional Depiction of Natural Monopoly 4 2.2 Measurement of Possibility of Natural Monopoly
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NAME – Hassan Usman Zia SUBJECT – Introduction to Economics COURSE CODE - PEC.2013 SUBJECT LECTURER – Ms Naathiya Mohan INSTITUTE – Institute Technology Pertama QUESTION – 1 (A) In the current situation we are planning a 250-km trip to Thailand but you are indifferent whether we should take a bus or drive. When you are informed about the typical cost of travelling a 10‚000 km driving by Hertz that are as follows: Insurance – RM 1000 Interest – RM 2000 Fuel and Oil
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National University of Singapore EC1101E: Introduction To Economic Analysis Mid-Term Test Semester 1 (2009/2010) Answer all questions. |Production Possibilities of Motorcycles and Cars | |Combination |Motorcycles |Cars | |A |0 |6 | |B
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1. Mrs. Kelsey Bowser using the ABC method decided to use the number of garments as the cost driver of the change-over costs. Nevertheless‚ I argue that this was not the best possible choice. I will try to defend my point using the following example. Let’s assume that Guess Who Jeans demands 600‚ not 500 garments per shipment. Although the number of garments changes‚ the total change-over costs would stay the same‚ because no additional retooling of the machine would be necessary. The whole change-over
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