Answer the given exercises using outside references and apply the principles to your own work experience: Write an essay on each of the following topics using a total of six references:
Q1. If the demand for a product is inelastic, what will happen to total revenue if price is increased?
Q2. Define and explain the differences between economies of scale and economies of scope. Define learning effects and explain the differences between economies of scale and learning effects.
Q3. What four basic conditions characterize a competitive market?
Q4. Explain why perfect personalized pricing is typically more profitable than menu pricing. Why then do companies use menu pricing?
Q5. Consider three firms: (1) a shoe store at the mall, (2) a manufacturer that produces racing boats, and (3) a city-wide house painting firm. (a) Compare the firms. Which firm would you expect to engage in the most price discrimination and why? (b) How could having an eBusiness Web site for each of the firms possibly change the pricing policies, customer service, and available information of these three types of businesses to consumers? Explain your position for each company.