substitute good is $2.00. Suppose P = $1.00‚ (a) What is the price elasticity of demand? (b) What is the cross elasticity of demand? 3. The following function shows the market demand for wheat: Q 40 2P 0.2Y Pb where Y refers to income and Pb refers to the price of barley. Assuming that wheat and barley both sell for RM2‚ and income is RM10‚ calculate the price elasticity‚ cross price elasticity and income elasticity for wheat. 4. State whether each of the following is TRUE or
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CASE STUDY: NETFLIX ADJUSTMENTS TO THE BUSINESS MODEL 1st : no penalty fee for late return. At first‚ they allowed the client to rent a certain number of movies per month. They changed later to an unlimited number and 3 movies at the same time. 2nd: implementation of the recommendation system (the subscribers could rate each movie and leave comments). Negotiation with big studios in order to reduce the unitary price per movie in exchange for a fee based on the number of rentals. 3rd: Improvements
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as a customer could watch a movie and mail it back‚ the customer would receive another from their rental queue. The customer pays their money and they end up saving a lot on rental fees because they are promised new movies within a day of the delivery of the movie that they returned in a pre-paid envelope. One of the reasons that Netflix has been able to maintain their competitive advantage is the due to many people have already chosen Netflix as their online movie rental choice and it would be very
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Brand awareness is one of the biggest assets that athletic shoe companies as Nike‚ Adidas‚ Reebok‚ Fila can have. Brand awareness always brings a considerable advantage in getting consumer’s attention and making a good place in that shoe market. If a well established brand name effectively mentions the messages of quality and dependability. Thus consumers will automatically go to that brand relying on the image that has been created when they don’t have time to shop around. Athletic shoe manufacturers
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WAIT ’TILL NEXT YEAR by William Goldman and Mike Lupica (August 10‚ 2005) At least twice a day‚ a high school or college student sends me an e-mail asking for advice -- they want to write about sports some day‚ they don’t know how to go about it‚ and they’re wondering if I can help. And I never know what to write back. How can you answer a question like‚ "I want to write a sports column‚ tell me what to do?" Last weekend‚ I thought of an answer. Just a quick back story: I probably own
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The business model for Blockbuster and the one for Netflix have many variations. Blockbuster was solely a “brick-and-mortar” company having no online affiliations. It made its money mostly from continuously providing customers with new movie releases to rent. Building thousands of Blockbusters countrywide also helped lead to the company’s success‚ for by doing so‚ customers were provided with the convenience of location. Both Blockbusters late fee system‚ which guaranteed the timely return of rented
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Competitive Analysis Blockbuster Inc. and Movie Gallery are currently the two strongest competitors in the market‚ and therefore pose the biggest threats to Netflix. Amazon‚ Intelliflicks‚ and Cleanfilms are all present in the market‚ but don’t possess enough force at this time to be considered a threat to Netflix. Blockbuster As of right now‚ Blockbuster is the biggest competitive threat to Netflix. Blockbuster was incorporated in 1989 in Delaware and is a major renter of home videocassettes
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1 Situation Analysis Company Background: Netflix‚ Inc. is the world’s leading DVD rent-by-mail company. The Company was created by Reed Hastings and Marc Randolph in 1997 in Scotts Valley‚ CA. The idea came to Hastings after he turned in Apollo 13 in late and had to pay $40 in late fees. When Netflix.com originally started business‚ they started out with only 30 employees and 925 DVD’s for rent. The plan that was originally offered was a seven-day DVD rental for $4‚ plus $2 shipping‚ with
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1. Summarise the main development of a child from the age range 0-2 years‚ 3-5 years and 5-8 years. Development refers to the process of learning new skills and abilities‚ and acquiring emotional maturity. All development changes are the result of both genetic and environmental factors. Genetic factors and diet are in the main responsible for growth‚ whereas environmental factors such as quality of the diet and disease are responsible for the emotional growth. ‘Child development’ is the term
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products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line‚ the controller‚ Robert Hermann‚ has developed the following information. Total estimated oh cost for the two product lines are 770‚000. Car Truck SOL FOR A) DL.hours for car wheels=40‚000*1=40‚000 Estimated wheels produced 40‚000 30‚000 dl hours for t. wheels= 10‚000*3=30‚000 ( 70‚000 tot.dl hours.) DL Hour per wheels 1 3 770‚000/70‚000=11$per dl hours
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