Reference no: EM132941314

1. Examine the factors, which determine how businesses price their products.

2. Discuss how other elements of the marketing mix might be affected by a business pricing decisions.

3. Assume a business has decided to lower its prices for all its products. Evaluate other changes to the marketing mix that the business might need to adopt.

4. Explain the difference between mass marketing and niche marketing.

5. To what extent might sales forecasts be useful for a business such as Bata.

6. An economy satisfies all the conditions for Pareto optimality except for one producer who is a monopolist in the market for her output and a monopolist in the market for the single input that she uses to produce her output. Her production function is q = 0.5x, the demand function for her output is p = 100 - 4q, and the supply function for her input is r = 2 + 2x. Find the values of q, x, p, and r that maximize the producer's profit. Find the values for these variables that would prevail if she satisfied the appropriate Pareto conditions.

7. Consider an economy with two consumers, two public goods, one ordinary good, one implicit production function, and a fixed supply of one primary factor that does not enter the consumer's utility functions. Determine the first-order conditions for a Pareto-optimal allocation. In particular, what combination of RCSs must equal the RPT for the two public goods?

8. Assume that the cost functions of two firms producing the same commodity are C1 = 2 + - C2 = 3 + Determine the output levels of the firms on the assumption that each equates its private MC to a fixed market price of 240. Determine their output levels on the assumption that each equates its social MC to the market price

9. Determine taxes and subsidies that will lead the firms described in Exercise 36 to their Paretooptimal output levels but leave their profits unchanged. What is the size of the social dividend secured by this change in allocation?

10. Assume that there are two consumers and two commodities. Let the utility functions be U1 = q11q12 and U2 = q21q22 with q11 + q21 =q1 and q12 + q22 = q2. Show that Scitovsky contours are given by q1q2 = (√ + √ ) 2 .