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1. Assume that the Jambo Corporation produces two goods and that the marginal cost of production for each is effectively zero. Discuss the trade-off in terms of the total revenue values that this firm faces in choosing to price these goods separately at a value of $36 per unit or in a pure bundle for $40. Use a graphical framework to illustrate the separate prices and bundle price for both of these alternatives. For each area identified in this framework state the relationship between the reservation price and bundle and/or individual price.
2. Discuss the meaning of third degree price discrimination. Assume that in a given market there are two groups of consumers: A and B. Group A possesses a price elasticity of demand of -2, while group B possesses a price elasticity of demand of -5. If marginal cost is constant at $2, discuss how one could find the price and coupon values at which profits are maximized. Discuss how this calculation relates to the definition of price discrimination.
3. Using a graphical framework, explain why a pure monopolist might wish to engage in price discrimination. Discuss the meaning of first, second and third degree price discrimination. Provide examples that illustrate the character of each type of price discrimination.
The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.
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Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..
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