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How much would Wyandotte have to reduce the price of polyol to achieve a 15 percent increase in the quantity sold?
Which of the following products and services are likely to encounter adverse selection problems: golf shirts at traveling pro tournaments, certified gemstones.
If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Why should the early adopters of an information technology system provided by IBM Systems Solutions be willing to pay more for a closed-end lease of servers.
What should the most vulnerable firm with the least loyal customers do to initiate play? What would be More's best-reply response if attacked and More survives?
How does the analysis and the strategic equilibrium outcome differ in Exercise if the other firm enjoys a cost advantage (e.g., $35 at AA&D)?
In the absence of a binding and enforceable agreement, determine the dominant strategy for AMC. Determine the dominant strategy for SAMI.
Develop a payoff matrix for this decision-making problem. Determine the dominant advertising strategy and minimum payoff for Toshiba.
What is the total market demand for polyglue at the price established by Alchem in Part (a)? How much of total demand do the follower firms supply?
What trends did Nokia pursue as it designed mobile phone products in the late 1990s? (Refer to the Managerial Challenge at the beginning of this chapter.).
Should General Medical accept the Defense Department order? If sales for balance of year are expected to be 50,000 units less because of some lost customers.
What are the income-distribution effects of a pricing scheme that charges the same fee to all students?
What problems arise in PepsiCo's couponing customers every other week to try to attract additional business?
In response to entry threats by a potential rival who has done marketing research in your target market and is offering a lower price point.
Calculate the eight-hour-shift costs of operating a taxi with a medallion license that cost $125,000 borrowed at 10 percent interest assuming two shifts.
What customer sorting rule will likely apply? Is there any reason to believe Starbucks will have a different strategy in responding to Dunkin' Donuts' 4,100.
Now, brinkmanship pricing has broken out with Xbox 360 discounted from $760 to a range of $400 to $343. Which firm is likely to blink first?
What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120.
If Boeing's dollar aircraft prices increase 20 percent. What effective price increase is facing Japan Air Lines for the purchase of a Boeing 747?
If the domestic prices for traded goods rose 50 percent over 10 years in Japan and 100 percent. What would happen to the yen/dollar exchange rate? Why?
After an unanticipated dollar appreciation has occurred, what would you recommend a company like Cummins Engine do with its strong domestic currency?
If the U.S. dollar were to appreciate substantially, what steps could a domestic manufacturer like Cummins Engine Co. of Columbus, Indiana.
Use the monthly series on the Consumer Price Index (all items) from the previous two years. Compare your answer to that of Moody's on-line U.S. Macro Model.
Which alternative should management select? What additional information would be useful before making a decision?
Determine accounting profit for this venture. Determine economic profit for this venture. Which of the costs for this firm are explicit and which are implicit?