Why might this be a profit-maximizing strategy

Assignment Help Microeconomics
Reference no: EM13527532

Firms that make game systems like Playstation and Nintendo typically charge a price close to average cost on the game system itself, and do not change that price even when the systems are scarce or demand increases. Why might this be a profit-maximizing strategy?

Reference no: EM13527532

Questions Cloud

Explain hemoglobin is a complexing agent : Can we say that hemoglobin is a complexing agent. Discuss this issue, giving at least three reasons to substantiate your point of view.
Calculate the current in each resistor : Four resistors 10 ohms , 16 ohms , 22 ohms , and 38 ohms are in parallel. Find the current in each resistor when the parallel combination is across a 6.0 V battery
Calculate the book value of a three-year-old machine : Calculate the book value of a three-year-old machine that has a cost of $45,000, an estimated residual value of $5,000, and an estimated useful life of four years.
Explain how many moles of compound are found : Compound has a molar mass of 2.016 g/mol. How many moles of compound are found in 5.03kg of sample
Why might this be a profit-maximizing strategy : Firms that make game systems like Playstation and Nintendo typically charge a price close to average cost on the game system itself, and do not change that price even when the systems are scarce or demand increases. Why might this be a profit-..
Preparing the statement of cash flows : Net income for the year was $13,000. Prepare the operating and investing sections of a statement of cash flows for the year based on the data provided. Exercise
Determine the smallest angle of elevation : A football kicker can give the ball an initial speed of 27 m/s. He is 53 m from the goalpost which has a crossbar 3.09 m high. What is the smallest angle of elevation that he can kick the football and score a field goal
Explain the minimum amount of heat withdrawn : A steam engine operates between 138 C and 38 C. what is the minimum amount of heat that must be withdrawn from the hot reservoir to obtain 1000 j work
Will this help or hurt the balance of payments situation : Will this help or hurt the balance of payments situation?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the best example of a long-run decision

If a firm in a perfectly competitive market experiences a technological breakthrough, A. other firms would find out about it eventually B. other firms would find out about it immediately C. other firms would not find out about it D. s..

  Assume that the required reserve ratio is 10 if the federal

assume that the required reserve ratio is 10. if the federal reserve buys a 10000 government bond from an individualin

  Consider a homogeneous product industry with inverse market

consider a homogeneous product industry with inverse market demand given by p 1100 - 2qnbsp there is currently one

  Why cant individual firm raise its price by reducing output

Do you agree or disagree with the statement that: "A monopolist always charges the highest possible price."? Explain. b.) Why can't an individual firm raise its price by reducing output or lower its price to increase sales volume in a purely com..

  Current subsidy are discussed or addressed in parliament

THE SOUTH AFRICAN GOVERNMENT IS NOT PROVIDING ENOUGH WELFARE OR SUBSIDIES TO THE POOR AND UNDERPRIVILEDGED.

  Using spreadsheet graph average total cost and marginal

suppose that it costs microsoft 100to develop a new version of microsoft office and that it costs microsoft 20 to

  Industry short run labour demand curve

What circumstances would the industry short run labour demand curve have the same elasticity as that of a representative firm in this industry? which of the four laws of derived demand are important here? explain your reasoning.

  Find one strength and one weakness in each of the initiative

Based upon your own internet research, identify and comment on two supply-side initiatives included in the current U.S. stimulus package. Ensure your response includes one strength and one weakness in each of these initiatives.

  Increase in price affects the real money supply

A change in real money supply can result either from a change in nominal money supply through Federal Reserve policy or from a change in the price level.

  Find the long-run implications of adding this benefit to

a pet store is considering adding an employee discount of 25 off anything in the store to the benefits the employees

  What is the largest value of the herfindahl index

Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..

  Find profit maximizing level of output explain how you

task 1 consider the following table of costs for the winsome widget factory which operates in a perfectly competitive

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd