Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter CS, Problem 4CBE
To determine
To explain: The increase in profit.
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The following graph illustrates the weekly demand curve for motorized scooters in Madison.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
PRICE (Dollars per scooter)
325
300
275
250
225
200
175
150
125
100
75
50
25
0
0 10
A
+
20 30
X
B
Demand
40 50 60 70 80
QUANTITY (Scooters)
90 100 110 120 130
Total Revenue
?
Memo 1
To:Pricing Manager, Tri-State Region
From:Regional Vice President, Tri-State Region
Re:Revenue from EPIX
We recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our revenue from our subscriber base. Currently we have about 15,059 subscribers, generating monthly revenue of $146,823.Some have suggested we should cut price, as customers tend to be fairly price sensitive for add-on packages. However, in this case, if we lower price for our new subscribers, we really need to cut it to all of our existing subscribers as well. I have some concerns that lowering price will be counter-productive.The marketing department calculated some subscription levels at various price points in this region, and I need you to perform the analysis.…
One of South Africa’s cellphone operators, Cell C, is changing their overall business strategy.The focus is now on providing customers with “affordable and accessible services." To do thisthey need your economic expertise.They know that when price for premium services increases from R2/minute to R2.2/minute thedemand for their services falls from 12 customers to 10 customers.
Question: What recommendations can you make to increase total revenue?
Chapter CS Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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- Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per scooter) 325 300 275 250 225 200 175 150 125 100 75 50 25 0 09 18 27 A + 36 45 54 63 72 81 QUANTITY (Scooters) B Demand 90 90 99 108 117 Total Revenue ?arrow_forwardHome - Netflix C T connect Rachel Rachel https://newconnect.mheducation.com Pricing Fundamentals ADIVISIV LIVIN MI consider in addition to PRODUCTION COST that affects PRICE. There is one other COMPETITOR focused on the OUTDOOR ENTHUSIAST market, so this COMPETITOR will be directly challenging your efforts. In addition, your MARGIN PER UNIT must cover another set of important but potentially large costs. To investigate these additional costs, click on the other tabs in the top navigational bar and explore further. What are the major elements of those other costs? Channels and Segmentation Channels and Advertising Advertising and Segmentation Cos F M Distr ODIO Harrow_forwardCouldn't do this, please provide concise workout and correct solution. Greatly Appreciated!arrow_forward
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