Reference no: EM13118741
1. In the kingdom of Spamalot, only a few people eat spam. You own the patent on Spam production and enjoy exclusive rights for the production of this delicacy. Yet your company does not make any profits.
a) Why does your company not make any profits? Show graphically and explain.
Now, using your considerable influence, you convince the king that it is the patriotic duty of every citizen to eat more spam.
b) Using the same graph as in part a. above, show and explain why your company is now making profits.
2. After much deliberation, you and your client approach the bank with your proposal for a new movie theatre. The bank is satisfied that you are a reputable client and is willing to lend you money provided they feel that the business would be successful. They wonder if you have done the proper market research based on the experiences of similar products in other cities. Specifically, they wish to know how your advertising expenditure will affect ticket sales, and, given that you will have some control over the price, how a change in price will affect ticket sales. In addition, you might also wish to look at the effect of temperature on ticket sales. You say that you have not done this research yet, but are willing to go over to the nearest computer lab, do the research, and come back with answers to their questions. Describe in detail how you would conduct this research!
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: Why does your company not make any profits? Show graphically and explain and you convince the king that it is the patriotic duty of every citizen to eat more spam.
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