Reference no: EM1374710
The title of an article "The Wall Street Journal was "Pricing of Products Is Still an Art, Often Having Little Link to Costs." In this article, the following cases were cited:
Vodka pricing: All vodkas are essentially indistinguishable - colorless, tasteless, and odorless - and the cost of producing vodka is independent of brand name, yet price differs substantially.
Perfume: A $100 bottle of perfume may contain $4 to $6 worth of ingredients
Jeans and "alligator/animal shirts: The "plain pocket" jeans and the Lacoste knockoffs often cost 40 percent less than brand-name items, yet the knockoffs are essentially identical to the brand-name items.
a. Do these difference undermine economists' analysis of pricing? Why or why not?
b. What does each of these examples likely imply about fixed costs and variable costs?
c. What do they kiely imply about costs of production versus cost of selling?
d. As what type of market would you characterize each of the above examples?
Soft-drink companies pay universities for the exclusive "pouring rights" to sell their products on campus. In a recent deal, the University at Buffalo signed a contract with Pepsi for $200,000 per year limiting on-campus soft-drink sales to only Pepsi.
a. Why would Pepsi agree to pay such a fee?
b. What would likely happen if there were no pouring rights on campus?
c. Is the sale of pouring rights beneficial to students or harmful to them?
|
Environmental externalities
: Sometimes market activities have unintended positive or negative effects outside the market scope called externalities. As a rule maker concerned with correcting effects of gases
|
|
Illustrate what are your retailer profits for each stock
: Illustrate what are your retailer profits for each stock level. Supplier profits for each stock level. Supply chain total for each stock level. Fill rates for each stock level.
|
|
Determine upper and lower control limits
: Machine's output is known to be approximately Normal with mean of 2.0 litter and standard deviation of 0.01 litter. Output is monitored using means of samples of 5observations. Determine upper and lower control limits that will include roughly 95...
|
|
Are there any possible instances in an organization
: Are there any possible instances in which an organization strictly pursuing a theory O plan of change over time might not be able to respond to change at all.
|
|
Pricing of goods in the real world
: Jeans and alligator or animal shirts: The plain pocket jeans and the Lacoste knockoffs often cost 40% less than brand-name items, yet the knockoffs are essentially identical to the brand-name items.
|
|
Total financing sources in the amount
: When the bonds are issued, the Enterprise Fund will report total financing sources in the amount of
|
|
Illustrate what are design and effective capacities for bar
: Town barber shop can accommodate 35 customers per day. Manager has determined that if 2 additional barbers are hired, shop can accommodate 80 customers per day. Illustrate what are design and effective capacities for barber shop
|
|
What does not have a cause of action under title
: tephanie does not have a cause of action under Title VII for gender discrimination because she did not file action before she became a woman. d. Stephanie has a cause of action under Title VII for gender discrimination because she is legally consi..
|
|
Describe the concept of comparative advantage
: Economic opportunities happen from nations which develop industries in which they have a comparative advantage and describe the concept of comparative advantage.
|