Nobody downloaded yet

Assignment2 economics - Essay Example

Comments (0) Cite this document
Which pricing strategy would you use in each of the following situations What do you charge [Examples might be total cost + 10% markup, Market price (what everyone else is charging for the same product), total cost + 80%.] Explain your reasoning.
a) A new technology you have developed and recently patented…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Assignment2 economics
Read TextPreview

Extract of sample "Assignment2 economics"

Download file to see previous pages The product is target at middle income earners so a higher mark up can scare them away will raise mark up gradually based on demand.
b) A new technology you have developed and recently patented. The market has been awaiting this product and its purchase by a customer will yield a tremendous competitive advantage. The only users will be very large Fortune 200 companies who have deep pockets and are anxious for the competitive advantage your product yields.
Reason: The product is based on a new technology so there are currently no competitors. Patent rights prevents the entry of competition hence 80% of mark up. Besides the buyers are affordable Fortune 200 companies waiting to double their returns based on this product. Besides the tremendous expected demand.
c) You own a railroad company. You are about to junk some old boxcars. However, there is a surprisingly tremendous demand for boxcars to be used as suites, just like the ones at Bryce Memorial Stadium at the University South Carolina.
Reason: The 30 % mark up due to the demand for the product. But the product is not patented and there is competition from other railroad companies hence only 30% will raise or lower to offer a competitive price as the boxcars will be junked if not.
f) Your company owns a 5-acre tract of land on a hill. ...
product is not patented and there is competition from other railroad companies hence only 30% will raise or lower to offer a competitive price as the boxcars will be junked if not.
f) Your company owns a 5-acre tract of land on a hill. You do not plan to use the land, but rather to keep it as 'greenspace' for your employees. You have been approached by a cellular company who wishes to place a tower on your site. They have begun discussions with another company who has a less attractive site. This company will try to negotiate for $8,000 per year.
Price of the 5 - acre tract - $8000 (or more attractive for the cellular company)

Reason: The company achieves its aim in keeping the area green as well as will receive revenue of $ 8000 as rent without any maintenance for the tower unlike a building rented.

g) You own a start up cellular company and are considering how to price your basic, standard phones if customers will sign a contract to keep your service for a year.

Price of the service will be - 10% lower than the market price
Reason: The product is new and needs market penetration among existing players. Besides the signing of contract by the customers for a year will reduce attrition and salvage the cost
Question 2: Discuss the differences in how each market type prices its product to maximize profit.
Products in different market types are priced differently. Find below a closer look at various
market types, buyer and seller ratios, pricing strategies, and the impact of advertising. Entry into
and exit from markets, Price leadership and price differentiation.
Types of Markets 4
Market with Perfect competition: In a market with perfect competition, a large number of sellers
and buyers ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Assignment2 economics Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Assignment2 economics Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from
(Assignment2 Economics Essay Example | Topics and Well Written Essays - 1250 Words)
Assignment2 Economics Essay Example | Topics and Well Written Essays - 1250 Words.
“Assignment2 Economics Essay Example | Topics and Well Written Essays - 1250 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Assignment2 economics

Assignment2 their own institutions, they will give great care in customer services and other repute gaining processes. Ultimately, long-term incentives enable a company to meet its various predetermined goals. 2. Long-term thinking It is another invaluable merit of the long-term incentives. Under the old schemes of incentives, executives were focused on the annual benefits that they would receive from the company. In order to enlarge the figure of annual compensation, the executives often emphasize their short-run objectives rather than bank’s ultimate interests. As a result, they tend to formulate fast rewarding policies that would probably diminish the bank’s economic growth in the long run. However, the thoughtful terms of the...
10 Pages(2500 words)Essay


...? Expecting the Unexpected Looking into a person’s personality there are surprises around every corner. I have learned to expect the unexpected when working on this assignment. I asked five friends to take the personality test, along with taking it myself, and the results did not turn out the way that I had expected. My friends, who I thought had an okay view on the world, really don’t think that it treats them fairly and the people who I thought were more aggressive than the rest scored lower than those who I thought to be less aggressive people. I also found myself a little surprised with how my scores turned out. Just when you think you have yourself figured out you learn something new. Though no matter what a piece of paper... Expecting...
7 Pages(1750 words)Essay


...(land, minerals, forests, water, fisheries and geothermal power). Those recommendations were looked into and all the necessary clauses were included. The Act is significant since it outlines how New Zealand’s natural resources can be managed without interfering with the environment. According to Section 5 of the Act, its core function was the sustainable management all resources, and it goes ahead to define sustainable in terms of the environment, economics and social life. The principles of Waitangi are the last important element of this study; they provide a framework on how the Treaty should be implemented without watering down or undermining its primary function and robbing it of its meaning. According to Calman...
7 Pages(1750 words)Essay


...? Who owns the water of Waikato River in New Zealand? The Maori community’s feeling of ownership or rather acting as partners in issues pertaining to Waikato River are subject to threat due to the throne’s failure to bring them aboard in signing a deal relating to the rivers usage. This paper looks at the basis of the laws the crown uses, the Treaty of Waitangi and argues that while this community does not have ownership in terms of being able to dispose of the resource (sell), they are indeed the immediate inhabits historically and hence have entitlement to be part of its management. It notes various legal backgrounds that recognize the link between culture and natural resources, in addition to citing the role they can play... Who owns the...
7 Pages(1750 words)Essay


...publication of The Whole Earth Catalogue contained appraisals of magazines, books and hand tools arranged in seven thematic sections; learning, comprehending whole systems, nomadics, industry and craft, community, communications, and shelter and land use. Over the next four years, the publication accomplished a lot, including establishing a connection between economic activity, information technology, and different varieties of community that would survive the counterculture and turn into an essential component of the digital universe. Individuals who moved back to the land experienced a profound uncertainty toward technology in the same way as other individuals of the counterculture. In contrast, similar to their...
7 Pages(1750 words)Essay


...Reconstruction: Success and Failure. Reconstruction: Success and Failure. Reconstruction refers to the controversial period 1865 – 1877, following the American Civil War, and pertains to “the attempt to rebuild and reform the South politically, economically, and socially after the Civil War, and to refashion race relations throughout the nation.” 1 While the defeated white Southerners resisted any attempts at integrating African-Americans into society, the Republicans who 1controlled Congress enacted far-reaching legislation to facilitate inter-racial democracy. From this perspective, reconstruction may be considered both an achievement and a failure for the United States. Reconstruction was a failure in the South, as the white... ...
2 Pages(500 words)Essay


...ORGANIZATIONAL CULTURE AND ORGANIZATIONAL CHANGE Culture is the set of attitudes, behaviors, and values that is shared by a group of people and it iswell explained by Hofstede’s cultural dimension. Hofstede stated that every human being carried “mental programs” which is a component of national culture and is developed from their experience, the four dimensions of his study are ‘power and distance’ it denotes the extent of deviation in inequality in power among members of an organizational society, ‘uncertainty avoidance’ it is the degree to which the members of an organizational society feel threatened and avoids such uncertain situations, ‘individualism and collectivism’ its reflects on the individual aspect and living... CULTURE AND...
2 Pages(500 words)Article


... Memo The Business Manager The Regional Manager October 22, Suggested Revisions for the Memo Effective technical communication is important in any organization. Therefore, individuals should follow the communication guidelines that have been defined by experts. In the memo addressed the Plaza Residents, there are certain errors that make it less effective in communication. The memo did not follow the correct format because the date should be located just before the subject. Moreover, the subject should have its first letter capitalized. The memo would have been more readable if it made use of headings of each problem highlighted. For example, the first paragraph needs a clear heading concerning the care of pts within the plaza... Memo The...
2 Pages(500 words)Essay


...Consumer Behavior s Consumer behavior is defined by Kuester as the study of people, groups of people, or organizations as well as the processes that they utilize to choose and use, along with dispose services, products. Most consumers purchase features which bring to them benefits that get them closer to the valued end states. The valued end states comprise of safety and security, achievement, good health, social approval, belongingness, self-esteem, freedom, peace of mind, and happiness among others. The customer purchased the facial mask with a terminal value of beauty and good health. The customer noticed that there was a problem with his skin and he starts making a research about the perfect cure for that by searching online... Behavior s ...
2 Pages(500 words)Coursework


...MEDIA I. The media is one of the most controlling, informative and critical part of the human society. This is so because the society relies on the media to get information from other geographical areas and location which are far from the human persons in other parts of the world. Conventional wisdom and empirical evidence has pointed to the direction that the society skews its opinion towards the area which the media is alluding to. In practice, the teenagers or the young girls are not an exemption since they are also likely to follow suit and believe what the media puts forth. Most importantly, there are popular people in the world who get a lot of attention thus the whole society as a whole seeks to follow and fodder... I. The media is one ...
6 Pages(1500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Assignment2 economics for FREE!

Contact Us