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Price elasticity of demand
We have discussed how firms with market power impose different prices on products consumed by their customers, based on different levels of elasticity. You must reflection on those industries that follow this strategy successfully. Choose a market or industry and answer:
1) How do companies in the selected industry manage to charge customers different prices based on their different levels of elasticity?
When answering you should:
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Annual receipts less expenses will be approximately $21,000 per year over the six-year study period. Use the PW method and a MARR of 15% to determine whether this is a good investment.
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You have the option to refer first to get perfect knowledge which will help knowing what will happen (good/bad). Construct a decision tree based on this information taking into account inflexible, flexible, and consulting.
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