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Manages regularly face the choice of increasing advertising expense or reducing price to increase sales in the Oligopoly market structure. Suppose you have the following information. • Current product price equal $24.00 • Current sales level equal 30,000 units • The advertising department expects the next $20,000 in ad spend should increase sales by 1,000 units to 31,000 while maintaining the current price of $24.00. • The finance department predicts dropping the price by $2.00 will increase sales by 3,000 to 33,000 units next year. Which action should you take next year (increase advertising or drop price)? Show your work and explain your answer Explain the basic difference in each choice with respect to the theory of consumer demand (the demand curve).
Prepare an individual, 2500 word business plan and group presentation detailing your business idea. Use the following details to help structure your business plan.
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
Specify the main economic (not political) drawback of economic integrations among nations? Explain (do so in no more than 40 words).
What profit do you expect that the firm will make in the first year? (iii) Do you expect this profit level to continue in subsequent years?
Vermont is one of many states that passed Certificate of Need (CON) laws in the 1970s. Many interest groups are in favor of repealing all CON regulations. Assuming perfect markets, describe in one page or less, using graphs where appropriate, the eff..
Samantha Roberts has a job as a pharmacist earning $30,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $40,000 per year or to purchase a pharmacy that generates a revenue of $200,000 per year.Compa..
Samson Industries purchased a new manufacturing system that has an estimated useful life of 17 years. The company anticipates annual operating costs will be $1483 and will increase by a uniform percentage of 4% per year. How much should the company d..
What factors led to the mortgage default crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing
"Loans are just like used cars. If you see an ad in the paper for a used car, you have to wonder, why is the owner selling it? Maybe there is something wrong with the care that is hard to see. As a result, when you approach the seller, you will want ..
An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, your job is to troubleshoot the problem and get results. Your instinctive reaction is to open up new channels of d..
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
What does the plaintiff need to file in order to bring a legal action and what are some of the defendant's proper responses? What is the role of a court with appellate jurisdiction? What is jurisdiction? Describe how jurisdiction over a person or pro..
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