Existing firms advertising expenses

Assignment Help Business Economics
Reference no: EM131953832

Advertising is one way existing firms can impose heavy costs to discourage entry into the industry. For? example, suppose an existing firm spends ?$200 000 on advertising costs and sells 100 00 units of output. Now assume a new entrant comes into the industry. The new entrant decides to match the existing firms advertising expenses but only sells 20 000 units of output.

The per unit cost of advertising for the existing firm is ?$?

Reference no: EM131953832

Questions Cloud

Return to the natural rate of output : In the long run, is it true that the economy will always correct itself, leading to a return to the natural rate of output? Explain.
How can we mitigate income inequality and poverty in usa : What would be a brief review of income inequality and poverty in USA. How can we mitigate income inequality and poverty in USA?
What are the expectations for an emerging adult : What are the expectations for an emerging adult in your culture? Compare and contrast the expectations and roles of an emerging adult in the different cultures.
Explain what were your expectations about the message : Explain what were your expectations about the message and how were they influenced or changed by the manner the information was delivered?
Existing firms advertising expenses : The new entrant decides to match the existing firms advertising expenses but only sells 20 000 units of output.
Describe erikson developmental stage : Describe Erikson's developmental stage, intimacy versus isolation. Discuss the core challenge associated with this stage and what might occur.
Analyze the speakers physical aspects of delivery : Physical Delivery: Analyze the speaker's physical aspects of delivery. How does the speaker use posture, gestures, illustrators, and emblems?
Decrease the money supply : if the Fed will increase or decrease the money supply, and 4) what open market operations will the Fed conduct.
Why is bidding your valuation weakly dominant strategy : Why is bidding your valuation weakly dominant strategy in the standard independent private values auction model? Explain all possible cases

Reviews

Write a Review

Business Economics Questions & Answers

  Their prices are px and py

An individual, who has income I, cares only about two goods: X and Y. Their prices are Px and Py, respectively. The individual's utility function is U(X,Y)=aln(X)+(1-a)ln(Y).

  Discuss the affordable care act

Discuss the Affordable Care Act (Obamacare) with regard to the following:

  Drip system-new type of infusion pump reduces

Compared with a drip system, a new type of infusion pump reduces the cost of administering chemotherapy from $25 per dose to $20 per dose. The complication rate of each system is 2 percent. Which should you choose? What sort of analysis should you do..

  Develop a problem-solving philosophy

You are to review the problem-solving strategies below and create your own strategy (you can also refer to Chapter 4 in your textbook for additional information

  Temporary assistance for needy families

Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Be sure to place..

  Formulate intercept-slope equation of kaths budget line

Kath has $80 (income M) to spend on pizza (good 1x) and coke (good 2x). The price of a slice of pizza is $4 and the price of a can of coke is $1. If Kath buys only pizza, how many can she buy? Formulate the intercept-slope equation of Kath’s budget l..

  Speculate on the most significant changes

Assume you have the power to make reforms to the way tax research and planning is currently conducted. Propose the reforms you would make. Justify your response.

  Compute manufacturing cost of goods sold-gross profit

The Kerwin Company had the following data (in thousands) for a given period: Sales $780 Direct materials 180 Direct labor 230 Indirect manufacturing costs 210 Selling and administrative expenses 130 There were no beginning or ending inventories. Comp..

  What is the sub game nash equilibrium of this game

Before entry, an incumbent earns a monopoly profit of Pm = 10 million. If entry occurs, the incumbent and an entrant each earn the duopoly profits Pd = 3 million. Suppose the incumbent can induce the government to require all firms to install polluti..

  Best seperate price strategy-pure bundling-mixed bundling

Food For Life makes health foods for active, outdoor people. Their three basic products are whey powder, a high protein strength bar, and a meal additive that has the taste and consistency of sawdust. Food for Life does not price discriminate. Please..

  Poverty-alleviation schemes-especially microcredit

On an international flight, you happen to sit across from the UN Secretary-General Ban Ki-moon (you were upgraded at the last minute). In casual conversation, he finds out that you have taken a course on Economic Development at the college level, and..

  Resulting full economic price

Suppose market demand and supply are given by Qd = 100-2P and Qs =5+3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd