Problem 1like supermarkets full-service department stores

Reference no: EM13375982

Problem 1:

Like supermarkets, full-service department stores like Macy's are generally in decline. What factors might these types of stores have in common behind their declines? How would you determine which were important and which were not?

Answer: Supermarkets that dominated grocery retailing in the twentieth century are losing their customers in the twenty-first. Between 1920 and 1970s, supermarkets innovated to win customers from small retailers with few locations and smaller inventories, often known (inaccurately) as "mom and pop" stores. Improved highways and cheap refrigeration lowered their cost of managing centralized distribution networks. The industry structure also changed as the chains eliminated intermediaries who repackaged goods into small lots for resale to small stores. Supermarkets thrived with the growth of the suburbs, bringing variety and convenient hours to customers whose time had grown in value. Competition also took the form of service offerings. Customers no longer had to wait for clerks to reach for items on shelves after clearance Saunders initiated self-service at his Memphis Piggly Wiggly store in 1916. Other stores in the chain introduced the checkout stand.

Management of chains large and small are searching for strategies to restore their former dominance. c

Problem 2

A. Verify all the prices and quantities calculated in the discussion.

B. Now assume that intermediaries come from a competitive market with and equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants an intermediary's services must pay $8 for them. What is the maximum per unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction costs?

c. Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers?

Reference no: EM13375982

Questions Cloud

The products profits per unit output are 50 per gallon for : the products profits per unit output are .50 per gallon for gasoline and .75 per square foot for fiber.nbsp then the

Problem 1 consider the following two-player static : problem 1 consider the following two-player static simultaneous-move game with perfect information. player 1 chooses

In november 1990 chrysler corporation announced plans to : in november 1990 chrysler corporation announced plans to initiate three-shift or nearly continuous 21-hours-per-day

A country has had a steady value for its floating exchange : a country has had a steady value for its floating exchange rate stated inversely as the domestic currency price of

Problem 1like supermarkets full-service department stores : problem 1like supermarkets full-service department stores like macys are generally in decline. what factors might these

A selfless person approaches jones and smith with a 100 and : a selfless person approaches jones and smith with a 100 and offers to sell it to the highest bidder but both the

Course scholarly paperwrite 1500 words about consumer : course scholarly paperwrite 1500 words about consumer behavior of assignment. writing assignments course scholarly

The article must be representative of the economic issues : the article must be representative of the economic issues represented by the topics or focus. the article review must

Demonstrate graphically the cost of income taxation of 30 : demonstrate graphically the cost of income taxation of 30 to consumers and producers for an income of 27908? how does

User Account

All Pages