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Selective pricing of technology products
Apple has recently launched the iPod nano under two different versions:2GB and 4GB. There are two types ofconsumers of the iPod nano.Type 1 has relatively narrow musical tastes and can easily do with less than 500 songs.These consumers are willing to pay $200 for a 2GB or a 4GB.Type 2 consumers like to listen to many different songs.These consumers are willing to pay $220 for a 2GBnano and $270 for a 4GB nano.Apple estimates that there are 20 million type 1 consumers and 15 million type 2 consumers.Ass me that it costs $50 to produce an iPod nano regardless of its capacity (2GB or 4GB).
(a) Suppose first that Apple were to sell only 4GB iPods (after all,they cost the same and some consumers prefer more than less). What is the optimal price for a 4GB iPod?What is the profit?
(b) Suppose now that both models are introduced on the market.What are the optimal prices for the two models (make sure to explain your reasoning very carefully). What is the profit? How is this pricing scheme called?Briefly discuss what is its purpose and why it could be useful.
See the inflation adjusted data also identify the periods of negative real economic growth. What might have caused each of these periods of economic decline.
List four reasons why analyzing the economy is not as precise as the multiplier model makes it appear.
The American Nursing Association (ANA) reports that there is a nursing shortage. Develop initiatives to move nurses through graduate studies more rapidly.
Explain, illustrating with graphs as necessary-be sure that the shape of your supply and demand curves make economic sense.
Discuss why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
Mention the four assumptions for the Monopolistic competition model.
Assume the 3 firms compete for market share over an infinite time horizon. Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0
RainAway, Inc., makes polymers used to coat the windshields of car's, planes, and boats-Complete the following table based on the RainAway product's price, output and costs per year:
Explain any other differences among selling the mobility product in the United States and selling it in your three targeted countries.
Early in 2007, a survey of greenhouses indicated that the demand for houseplants was rising sharply. AT the same time, large numbers of low price producers started growing plants for sale. The overall result was a drop in the average price of hou..
how percapita income fiscal policy laws local economies and census data affect the ability to fund governmental functions.
The federal government, in an effort to stimulate the economy also decreases taxes on all individuals except those earning over $250,000 per year.
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