Economics
A price discrimination strategy is one where different customers are charged different amounts. The price charged for my shop's submarine sandwiches will therefore be different for locals than for visitors. There are a number of ways to achieve this. In the context of a sandwich shop, the prices are going to be listed publicly on the menu, so it is impossible to openly discriminate with respect to prices. One technique that can be utilized to lower the average cost for each sub-for locals is to offer a loyalty card. The local would then receive either a discount or a free sub-after making enough purchases. This would deliver a lower price to locals in the long run. Alternately, a loyalty club can allow the locals to receive discounts if they are members of the club. A certain amount of annual sales would be required for club membership, or even a small fee could be implemented to join the club. Under this plan, only locals would have an incentive to join the club. Once in the club, the locals would receive a standard discount on their purchases. Again, this lowers the average price per sub-for locals in a way that visitors to town cannot take advantage of.
If the legislature implements a price ceiling that is below the current equilibrium price, two things will occur. Presumably, this price will be lower than the current price, if the current price is at equilibrium. The lower price will spur an increase in demand. This will reduce the marginal cost to the cable company as it takes advantage of improved economies of scale. However, there is the risk that the decrease in marginal cost will not be matched by a decrease in the price charged. Thus, the cable company will in all likelihood experience a loss as the result of this price ceiling. Faced with both a loss and an increase in their customer base, the cable company would either have to lower its cost of service...
To understand this, consider when the curve begins on the upside. At that point, the firm may need a new factory, increasing AC beyond a certain point of output; or other inefficiencies could emerge relating to the costs of managing a larger organization. Essentially, on the downside efficiencies are improving as the output nears capacity. When output hits capacity, the LRAC begins to move upwards again. 5. The new camera
Price Targeting Industry Customers usually complain that they purchased the same product or service at higher price than their friends did. This is actually the price targeting technique that sellers use in order to receive maximum profits or revenue. However, if the customers are aware of the actual price and sellers' technique then they can make a better deal. Price Targeting Price targeting is one of favourite techniques of vendors to earn more
The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition
The third degree discrimination is when businesses set prices depending on the location and the market segments. Here the supplier will identify the various market segments and have varying prices for the same item due to the varying consumer classes in these regions. The sales managers always have to look at the characteristics of the market and the customers in general. The factors that the sellers consider here are age of
marketing strategy direct marketing pricing activities strategy/Project improved duration . Make grader identify sections revised, (e.g. Track Changes feature Word). OVERALL COSTS The creation and delivery of the organizational service is linked to a wide array of costs, all of which are incurred in the organizational processes and operations. The more pertinent of them include the following: Costs with the commodities, including the usage of the personal laptop and other desktop features Costs
Managerial Economics What does your company produce? What utility or benefits does it provide to the consumer? How do consumers use it? The company is one of the top luxury carpet manufacturers in the world. The benefits provided by the luxury carpets include; elegance, class, status, comfort and durability. The primary use of luxury carpets by the consumer is for decoration of home or office interior spaces. What is your company's history with
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