Investment decisions: Low Calorie Microwavable food Course name: Course no. Date: Instructor’s name: The demand function for low calorie microwavable food depends on the price of the good, its competitive good, advertisement expenditure and income of the consumer. From the demand function and the elasticities calculated, it is found that the market for the low calorie microwavable food belongs to a monopolistically competitive market. A monopolistic competitive is characterized by a fair number of buyers and sellers. Therefore people can switch to another brand if a particular brand charges a high price. But a monopolistic competitive seller performs product differentiation. Thus he attracts the …show more content…
They are: Mergers and acquisitions Giving franchise ownership to other organizations Patent of intellectual property Use of distributors and dealers for marketing Adoption of new marketing strategies Forming cooperatives to minimize cost of operation, e.g. advertising and purchasing costs Public stock offerings Offering stock to its own employees In the short run, the firm can only change its variable input to change its output and profitability. In the long run, the company can indulge in R&D to reduce the cost of production. If it can innovate any cost effective method of production, then the firm can enjoy a cost advantage over the other firms. But if the price falls below the marginal cost, then the firm will incur losses and it will discontinue its production. In the long run, the lowest point of the average cost curve denotes the break even point. If the price falls below that the firm will shut down. In the long run, the firm can change all its inputs to change its output. Therefore the firm can change its capital to change the output. In other words, the company can expand via capital projects. A capital project is a project that needs a huge amount of cash to build and grow an asset. In some cases, acquisition of new assets is also termed as capital projects. Building of new warehouses by companies, or purchase new manufacturing equipment to increase efficiency on the line. But expansion via capital projects has several limitations also.
In this essay I will assume the role as an employee for the maker of a leading brand of low-calorie, frozen microwavable food chain. Using the data from 26 supermarkets around the country for the month of April and the equation data that has been provided to me, I will compute the elasticity for each independent variable as well as determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Based on these calculations I will recommend whether the firm should or should not cut its price to increase its market share. Lastly, with the understanding of the concept on
In anticipation of rising prices in the low-calorie frozen microwaveable food market companies should consider branding, product differentiation, competitive and temporary discount pricing strategies. The frozen microwavable food company is a monopolistic market. The demand function for low calorie microwavable food depends largely on the
New or increased domestic production of the company 's basic raw materials by other potential producers.
William and Flora Hewlett Foundation is a private foundation that give grants and gifts to different programs and addresses different social issues that include education, environment, philanthropy, global development and population, performance art programs, and other special projects. The foundation’s main objective is to help improve the lives of people for the betterment of the society. HF is a nonoperating foundation and relies on the “return on invested assets” to run the whole program (Viciera & Tung, 2006). With that being said, the foundation has to invest their resources to different assets and that it will help achieve the foundation’s goals.
Every year, countless person on foot mischances happen. They happen to individuals crossing occupied lanes or roadways, individuals taking a shot at separated vehicles at the edge of the street, youngsters playing in private neighborhoods and to individuals even on walkways in towns. Now and again the driver stops. In some cases they are attempt at manslaughter mishaps. Basically these occasions can be stayed away from with somewhat more alert.
Strategies of our firm In oligopoly market, one important method to increase the market share is to keep the price lower than competitors price. However, because at the beginning of the game, our firm ignored the importance of the plant size, process improvement and the training, our production cost was higher than other firms. So we could not use the
The low-calorie frozen microwavable industry appears to function under a monopolistic competition market structure. Having, “a few dominant firms and a large number of competitive fringe firms” is one of the main factors that make a market monopolistic competition (Mcguigan, Moyer, & Harris, 2014, p352).
Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Many people ask the question should marijuana be legalized. Some people think it should be some people not as much. There are four reason marijuana should be legal . One reason marijuana should be legal because it can help our economy grow. Since Colorado legalized marijuana it has created 18,005 full time jobs and about 2.4 billion dollars to the economy last year. Colorado will also be saving 12-40 million dollars simply by ending arrest for marijuana possession. Thats a lot of money that can be saved and use on other things, like getting schools new book, giving hospital more up to date equipment or just making more homeless shelters. So if marijuana became legal it wouldn't just be a good thing for all marijuana smokers but it would also be good for the kids, people in hospital and the homeless people. With the increase of money coming through the state jobs might begin to raising minimum wage. Who wouldn't want to get pay more money exactly nobody everybody want some extra money in their pocket to treat themselves their kids or just that
This paper will dwell on the managerial economic perspective of the maker of Tutor’s Frozen Feasts (TFF). TFF is one of the leading brands of frozen foods for those individuals to wishing to minimize their caloric intake. The data that will aid this assessment includes the demand for TFF from 26 different supermarkets all around the United States for the month of April. In order to make decisions that minimize costs and maximize the profits earned by the company, the manager must put into consideration the effect the independent variables like the item price, price of the major competitor’s products, cost of advertising, and consumer income to mention but a few. The effect of all these variables is measured by calculating the elasticities of all the independent variables in relation to the dependent variable which in this case is the quantity demanded of the microwavable food by TFF. The manager should also take into consideration the effect the independent variables mentioned above will have on the market share of Tiff Frozen Foods in the event the price of their microwavable foods remains constant.
Drugs are some of the most dangerous, and illegal substances known to man. Except for the “drug” marijuana, in my eyes it is an excellent working medicine which should be legalized for everyone’s use. Another word for marijuana is cannabis, it is a versatile plant most commonly used for medicinal and recreational purposes, the book The Short and Tragic Life of Robert Peace demonstrates these purposes well with Rob’s use of cannabis. However it doesn’t demonstrate them all, there is an estimated 50,000 uses for cannabis; medicine, paper, and clothes are a few examples of many. But the number one use for Marijuana is for its medicinal purposes. According to author and researcher Michael Scherer, CBD and THC are the chemicals found in
An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.
1. Analyze the fast food industry from the point of view of perfect competition. Include the concepts of elasticity, utility, costs, and market structure to explain the prices charged by fast food retailers.
So the investor will invest 32.58860806% of the investment budget in the risky asset and 67.41139194% in the risk-free asset.
Competitive Advantage: Creating and Sustaining Superior Performance, by Michael E. Porter. Author focused on three principle strategies that a firm can use to neutralize competition areas. low cost differentiation products, superior performance, and competitive technology. The profit potential of any organization can be truly determined by total 5 competition areas. 1 Jockeying for a position, 2 new competitors 3 substitute products/services threats 4 Raw materials power of suppliers 5. Organization customer bargaining power. Value chain is a tool that can be used to analyzing large number of value producing activities to determine customer segment need. Competitive advantage through low cost focus on ten major factors; economics, learning, capacity utilization, linkage within value chain, business interrelationships unit, vertical integration, Business cycles timing purchases, discretionary policies, location, and institutional factors. Two main area an organization achieve cost advantage is controlling cost drivers and two