Unit 8 class9

Article: BIZ Community. 2023. Innovative sustainability trends give South Africa's coffee industry a caffeine kick, 21 June 2023. [Online]. Available at: https://www.bizcommunity.com/Article/196/87/239424.html# [Accessed 23 January 2023].   Q.4.1 Defend the use of third-degree price discrimination by Tribeca Coffee when entering new markets. Note: you are required to provide at least two (2) application points. Q.4.2 Identify two (2) common errors in pricing that Tribeca Coffee could be potentially exposed to when entering Ethiopia and recommend ways for the business to minimise the impact of such errors. Q.4.3 Tribeca Coffee has decided to invest in its own fleet of vehicles to move its product across the SADC region. Explain how the business can capitalise on opportunities and minimise the impact of challenges in transportation technology.

Use the following graph for a monopolistically competitive firm to answer the next question. Dollars (5) 22 32 0 10 20 35 45 50 Quantity of Output (Units) This monopolistically competitive firm is earning economic profits in the short run and ATC Multiple Choice will continue to have economic profits in the long run will earn only normal profits in the long run this will cause its demand curve to shift to the right in the long run. this will cause its cost curves to rise in the long run

The following graph represents a monopolistically competitive firm in long-run equilibrium. Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum. PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200 150 100 50 MC 0 0 50 LRAC MR Demand 100 150 200 250 300 350 400 450 500 QUANTITY (Units) Monopolistically Competitive Outcome Minimum of the LRAC The long-run equilibrium price is $ (Hint: Use the graph to find the numeric value of the price at equilibrium.) The long-run equilibrium quantity is units. The LRAC curve is at its minimum at a quantity of The long-run equilibrium price is units. the marginal cost of producing the equilibrium output. ?

what are some pricing tactics used by companies? What form of price discriminations might a company use?  What type of pricing structure might company use. What other strategies might managers employ to maximize profit?

ICE (Dollars per scooter) 3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss 500 450 400 360 200 250 200 150 400 50 MC- ATC MR Demand 150 200 250 300 360 400 450 500 QUANTITY (Scooters) + Monopolistically Competitive Outcome Profit or Loss (?) Given the profit-maximizing choice of output and price, Citrus Scooters is earning sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and…

You are the Managing Director of Ghana Clins Ltd., a firm that supplies tissue paper for cars. Suppose your     marketing department has compiled the following data on   the price and quantity of tissue paper sold last month at 10 outlets in the Central Region of Ghana: Observation Quantity Price 1 180 475 2 590 400 3 430 450 4 250 550 5 275 575 6 720 375 7 660 375 8 490 450 9 700 400 10 210 500   Estimate the demand function for your firm. Interpret your answer by commenting on the marginal effect of a change in the product’s price How many units of your product will be demanded if the price is GHC 350.00? Given that your consultants have estimated the supply function to be:  What will be the equilibrium price and quantity of your product? Estimate the elasticity of demand for your product at the equilibrium price and quantity. Interpret your answer. Based on the price elasticity of demand,…

What will be the economic profit or loss for this monopolistically competitive firm at the profit-maximizing level of output?

Draw the graph of the product differentiation formula of Pepsi Industry.

Why does Pinterest consider Google to be its largest competitor? Pinterest Pinterest places a premium on mobile platforms when developing new products and services.

Hersheypark in Pennsylvania mentions the following offer on its Web page: “A military discount is available at Hersheypark during the regular summer operating schedule off of the Regular, Junior and Senior One Day admission. This discount is available to active duty military, reserves, retired military personnel, and members of the National Guard.” This is _____ price discrimination.

The mobile phone landscape looks drastically different today than it did three decades ago. In 1983, Motorola accounted for seventy five percent of the mobile phone market. But by 2021, its market share had shrunk to just 2.2%. How did this happen, and how has the mobile industry changed over the last 30 years?   In 1983, Motorola launched one of the world’s first commercially available mobile phones—the DynaTAC 8000X. Motorola went on to launch a few more devices over the next few years and quickly became a dominant player in the emerging industry. In the early days of the market, the company’s only serious competitor was Finnish multinational Nokia.   By the mid-1990s, other competitors like Sony and Siemens started to gain some solid footing, which chipped away at Motorola’s dominance. In September 1995, the company’s market share was down to 32.1%. By January 1999, Nokia surpassed Motorola as the leading mobile phone manufacturer, accounting for 21.4% of global market share. That…

Breakdown of a cartel agreement Consider a town in which only two residents, Sean and Yvette, own wells that produce water safe for drinking. Sean and Yvette can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 5.40 0 0 4.95 40 $198.00 4.50 80 $360.00 4.05 120 $486.00 3.60 160 $576.00 3.15 200 $630.00 2.70 240 $648.00 2.25 280 $630.00 1.80 320 $576.00 1.35 360 $486.00 0.90 400 $360.00 0.45 440 $198.00 0 480 0     Suppose Sean and Yvette form a cartel and behave as a monopolist. The profit-maximizing price is $ __________ per gallon, and the total output is __________ gallons. As part of their cartel agreement, Sean and Yvette agree to split production equally. Therefore, Sean's profit is  $ __________ , and Yvette's profit is __________ .…

Westchesser Gloves is a monopolistically competitive firm that sells leather gloves. Use the graph to highlight the area of profit or loss and answer the questions, Price per pair (5) 10 20 Marginal profit or loss: $ Aver co Pairs of gloves (in thousand) Demand 70 80 90 100 Profit or loss Calculate Westchesser's profit or loss at the profit-maximizing price. What will happen to the number of firms in this industry in the long run? Firms will enter this industry, increasing the price at which each firm can sell their gloves until firms begin to earn normal profits. O Firms will exit this industry, increasing the price at which each firm can sell their gloves until firms begin to carn normal profits. O Firms will exit this industry, decreasing the price at which each firm can sell their gloves until firms begin to carn normal profits. O Firms will enter this industry, decreasing the price at which each firm can sell their gloves until firma begin to carn normal profits

The mobile phone landscape looks drastically different today than it did three decades ago. In 1983, Motorola accounted for seventy five percent of the mobile phone market. But by 2021, its market share had shrunk to just 2.2%. How did this happen, and how has the mobile industry changed over the last 30 years? In 1983, Motorola launched one of the world's first commercially available mobile phones-the DynaTAC 8000X. Motorola went on to launch a few more devices over the next few years and quickly became a dominant player in the emerging industry. In the early days of the market, the company's only serious competitor was Finnish multinational Nokia. By the mid-1990s, other competitors like Sony and Siemens started to gain some solid footing, which chipped away at Motorola's dominance. In September 1995, the company's market share was down to 32.1%. By January 1999, Nokia surpassed Motorola as the leading mobile phone manufacturer, accounting for 21.4% of global market share. That put…

The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run. Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow. Quantity Price Total Cost Marginal Cost Total Revenue Marginal Revenue Average Total Cost (Board games) (Dollars per game) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 1 15.00 11             2 13.00 20         3 12.00 27         4 10.00 36         5 7.00 45         6 5.00 60         7 3.00 70         8 1.00 104           Under monopolistic competition, a typical firm will produce _______ board games at a price of $_____ per board game in the short run.

5- 3- 1- 20 40 60 80 100 Q MR Using the above graph, This profit-maximizing firm will produce Blank 1 units. -MC What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) Blank 1 Blank 2 Blank 3 Blank 4 Add your answer Add your answer Add your answer Add your answer

Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. 500 450 Monopolistically Competitive Outcome 400 350 ATC Profit or Loss 300 250 200 150 100 50 0 PRICE (Dollars per bike) MC MR Demand 400 0 50 100 450 500 150 200 250 300 350 QUANTITY (Bikes) Given the profit-maximizing choice of output and price, the shop is making shops in the industry relative to the long-run equilibrium. Now consider the long run in which bike manufacturers are free to enter and exit the market. profit, which means there are

12. Mr. Farmer has been in the business of selling cheddar cheese for almost three years, and thus far has been able to control the volume of the product by varying the selling price. He is seeking to maximize its net profit. It has been concluded that the relationship between price and demand per month is approximately D = 2500 - 10p, where p is the price per unit in dollars. The fixed cost is $ 1,100 per month, and the variable cost is $15 per unit. What is the optimal no. of units that should be produced and sold per month? What is the maximum profit per month? What are the breakeven sales quantities (range of profitable demand) ?

Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…

Price (costa) 17. The diagram above illustrates: ATC A purely competitive firm earning economic profit A purely competitive firm which is only able to break even when it is maximizing economic profit A firm which should shut down immediately A monopolistically competitive firm that is earning normal profit OA purely competitive firm that is making economic losses

4. Boxowitz, Inc., a computer firm, markets two kinds of calculators that compete with one another. Their demand functions are expressed by the following relationships: 9₁ = 64 - 4p1 - 2p2 and ter 92 = 56 - 2p₁ - 4P2. where p₁ and p2 are the prices of the calculators, in multiples of $10 (this information can be skipped, it is needed only to the answer), and q1 and q2 are the quantities of the calculators demanded, in hundreds of units. What prices p₁ and p2 should be charged for each product in order to maximize total revenue? What is the maximum total revenue? YA

Suppose there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the following price and profit data to answer the following questions. Ford's Chevrolet's Ford's Chevrolet's Selling Selling Profits Profits Price Price (millions) (millions) $4,000 $ 4,000 $ 8 $ 8 4,000 8,000 12 4,000 12,000 14 2 8,000 4,000 12 8,000 8,000 10 10 8,000 12,000 12 12,000 4,000 14 12,000 8,000 12 12,000 12,000 1. What price will Ford charge? 2. What price will Chevrolet charge once Ford has set its price? 3. What is Ford's profit after Chevrolet's response? 4. If the two firms collaborated to maximize joint profits, what prices would they set? 5. Given your answer to part (d), how could undetected cheating on price cause the cheating firm's profit to rise?

Please type your NUMERICAL answer in the space below. ENTER ONLY THE NUMBER. IF answers are in decimals, please round the number to one decimal point. Winterfell Cable TV pays $100,000 per year to earn exclusive rights to air a premium sports channel. There are two types of subscribers in Winterfell: 3,000 die-hard sports fans who will pay as much as $200 a year for the new channel and 20,000 occasional sports viewers who will pay as much as $25 a year for a subscription to it. a) If Winterfell Cable is unable to price discriminate, what price will it charge and how much are its profits? Price Profits= b) If Winterfell Cable is able to price discriminate, how much will it make in profits? Profits= What is the deadweight loss associated with the nondiscriminating pricing policy compared to the price c) discriminating policy? DWL=

Hypercompetition in the Australian retail sector By Dr Saalem Sadeque, Central Queensland University The Australian supermarket and grocery industry can be aptly described as hypercompetitive. In 2018–2019, the retail industry in Australia generated $103.4 billion of revenue and $4.2 billion of profit. The duopoly of Coles and Woolworths is being increasingly challenged by newer and leaner competitors such as ALDI and Costco, which have entered the industry with different business models designed to provide customers with value for money. One of the relatively newer players in the Australian retail industry is Costco Wholesale Australia, which is a subsidiary of the US-based Costco Wholesale Corporation. Costco has established 11 stores in Australia based in Victoria, New South Wales, Queensland, South Australia and the Australian Capital Territory, with plans to open two more stores in Western Australia in 2020. According to Patrick Noone, the managing director of Costco Australia,…

The accompanying graph depicts average total cost (ATC) marginal cost (MC), marginal revenue (M), and demand (D) 50 facing a monopolistically competitive firm MC 45 Place point A at the firm's profit maximizing price and quantity 40 35 What is the firm's total cost? ATC 30 25 total cost: 20 15 What is the firm's total revenue? 10 5 total revenue: $ MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity What is the firm's total profit? profit: $ Price and Cost ($)

Suppose the local electrical company, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices? Why? Use the editor to format your answer

Macmillan Learning The accompanying graph depicts the marginal cost (MC), average total cost (ATC), demand, and marginal revenue (MR) curves facing a monopolistically competitive firm. Place point A at the profit-maximizing price and quantity combination for the firm. What is the total profit made by the firm? Profits: $ Price 20 19 18 17 16 15 14 4321098 13 12 11 10 7 6 5 4 3 2 1 0 19.00 MR MC A ATC 17 Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity