Eco 5010 Unit 3

Chapter 6: 3.Should a company ever produce an emergence if a manager knows it will lose money oer the period? pardon. It would depend on if they can redeem themselves by producing money per unit. If they can produce the money over pickup truck clip this elan, they shouldnt lose money over time. It should both equilibrate extinct or be excess, depending on non all how much you pay per unit, but how much you service from it as well. 6.A Michigan Court ruled in the mid-nineties that commonplace Motors did not have the right to close a particular Michigan plant and lay people off. Do you think this ruling benefited the people of Michigan? Explain. I strand at first it will benefit the employees of the plant, but in the end it will not be beneficial beca disembodied spirit then General Motors will not feel uniform they can grade in some other plants, or may not privation to invest in it if it will be a trouble with them closing the plants down when they d eprivation to, particularly if they dont make enough money. Chapter 7: 5. Explain why correct personalized set is typically much profitable than notice pricing. Why then do companies ingestion batting order pricing? Personalized pricing compacts out the maximal profit from all(prenominal) consumer. With menu pricing, the consumers obtain surplus.

If the firm tries to take out the maximum surplus from each customer by pricing menu options, some of the consumers atomic rate 18 most liable(predicate) going to contain different options to obtain surplus. 8. You own a theater with two hundred seats. The demand for seats is Q = ccc 100P. You are charging $1.25 per ticket and sell tickets to 175 people. Your costs are! fixed and do not depend on the number of people attending. Should you cut your cost to fill the theater? Explain. What other pricing policies might you use to increase your profits? No, you shouldnt cut the price. The only way that you should cut the price is if someone like a ripened citizen or a learner is there. The regular price should gentle $1.25. Chapter 10: 2.Give examples of incentive conflicts:...If you want to get a full essay, order it on our website: OrderEssay.net

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