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Based on the price elasticity matrix given below:
aqufresh colgate crest mentadent
quafresh. black 1 blank 2 0.8 2 .0
colgate 1.2 -3.5 1.5 1.5
crest 1.0 2.5 -3.2 1.8
mentadent 1.8 1.2 1.3 4.0
1. Assume that Aquafresh own price elasticity is -1.5 and that the Colgate cross price elasticity of demand with respect to Aquafresh price change is 1. How do you interpret the own and cross price elasticities?2. Which brand is Aquafresh mainly competing with? Explain using cross price elasticities in the price elasticity matrix.
3. Aquafresh main competitor: Explain :
4. Which brand has the highest brand equity/power? Explain using Clouts and Vulnerabilities of the four toothpaste brands.
5. Brand with the highest equity/power
In city B, the value of an apartment also falls the further it is from the business center, yet the fall goes down gradually. For example, an apartment one kilometer away will lose 20 percent of its value and an apt 2 kilometers away will lose onl..
Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price
Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their fares 10 percent, and they anticipated that revenues would increase by about 10 percent as a result.
Suppose you currently run one shift at your plant. You have $1,000 per day in administrative overhead and the daily wages and materials cost of operating the shift are $30,000. If you expand to two shifts, your average cost per-shift.
Suppose the demand function for a firm's product is given by In Qdx=3-0.5 In Px-2.5 In Py In M 2 In A Where Px= $10, Py= $4, M= $20,000, A= $250 A. Determine the own price elasticity of demand, and state whether demand is elastic, inelastic, or unita..
Suppose that there are two types of players, good and medium. the team demand curve for top-quality players is Q = 27 - 5 w , and the market supply of top players is Q = 4w, where w is the wage in millions of dollars.
the industry demand function for bulk plastics is represented by the following equation: P=800 - 20Q where Q represents millions of pounds of plastic. the total cost function for the industry, exclusive of a required return on invested capital, is..
Calculate the total revenues for each price-quantity demanded combination (for example, if one were sold at $5, the total revenue would be $5). What happens to total revenue as price goes down in the elastic portion of the schedule
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A Whoey option pays the difference between the final price and the maximum price of a stock over the period of the the option. For example, if the price of a stock is 200, 220, and 234 in the previous periods
Calculate the equilibrium level of output when i=8% (let i=8). Where is this point on your graph Assume that i continues to be 8%. Calculate the equilibrium level of output when G increases by 100 (to 500). What is the size of the money multiplier
A foundry uses 3,600 tons of pig iron per year at a constant rate. The cost per ton delivered to the foundry is $145. It costs $92 to place an order and $18 per ton per year for storage. Find the minimum-cost purchase quantity.
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