Price Variations Of A New Mobile Products

(a) Give the algebraic expression for profit. Be sure to define your variables. (5 points)

There are almost 14000 retail business in Australia which exhibit great diversity in their size of business, region, format of retailing, nature of goods the sell. JB Hi-Fi and Harvey Norman both of the companies belong to retail industry that mainly focus on selling of wide varieties of electronic goods. Their price range of different goods they sale is vary though the range of price difference is insignificant. Hence, it would be worth full to mention a little comparison of difference in price range of goods they offer of these Australian based retailers and those of US based retailers. For instance, the same LG refrigerator costing $2500 at Harvey Norman – is available to American consumers from Amazon for just under US$1500. (Keane 2011, p. 1). Though this example is more related to marketing analysis of these companies but still I just wanted to point out the difference in their profit making ability which is followed by this huge difference in price range and moreover this big difference in their offered price would have effect on their cash flow statement

In other words: in an environment where prices are declining, CCS figures outperform their historical records.

Sales (in $ 1000s)= 16,020.78118 + 149.15175 * %spanishsp – 44.16538 * %dryers – 112.48017 * %freezer – 79.84655 * %sch0-8 + 9,393.82229 * comtype1 + 3,802.26442 * comtype2 – 3,123.24462 * comtype7

* Products remain relatively steady in pricing at an affordable cost even in leaner times when inflation rates and other benchmark indicators force people to slow down their spending

Firstly, it is highly agreed that offers and discounts are essential to promote the products for a company. Especially, it is believed to be more applicable for the new start-up. For instance, Giardano watches could always be purchased at a low price. To increase the number of sales and

This case study involves leading brands of low-calorie, frozen, microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country in the month of April. Furthermore, we are using the regression equation from Assignment 1 to determine the market structure in which the low-calorie frozen, microwavable food company operates. The following is the optimal price with new data from the information of previous data that was collected for the regression equation from the 26 supermarkets observed. The plan is to obtain an “optimal” selling price due to recent changes by selling environment. That suggests an imperfectly competitive market where our company has substantial market power to set our own price. From Assignment ,1 it was determined that the market structure (or selling environment) was perfectly competitive and the equilibrium price was to be calculated by setting QD equal to QS. The estimated price of Quantity demanded for the optimal price is as follows:

Some of these factors are, if there is competition in the same category, the amount of goods produced, the demand for the products and more.

The research statistically determines the profits of supermarkets based on the sales of food items, non-food items and size of supermarket. The regression model was done on both models to determine that in both models, increase in sales and size of stores increases the overall profit. However the model with independent variables sales of food items, sales of non-food items and size of stores is the more relevant model.

In the opinion of Baumol and Blinder (2011, p. 235), "monopolistic competition is a market structure characterized by many small firms selling somewhat different products." The authors in this case further note that the output of each entity is small in comparison to the market's aggregate output of competing but closely related products. With that in mind, the mobile phone market exhibits some key characteristics of monopolistic competition. In this market, customers in need of mobile phones are presented with a wide range of options to choose from. For instance, a customer who enters a mobile phone handset shop has the option of purchasing a Motorola, Nokia, Samsung, Blackberry or even an LG handset. All these products despite being closely related are also largely differentiated. As Tucker (2010, p. 268) notes, "the key feature of

An analysis is done on how the customer perceives the company’s products in comparison to the competitors’ products. Based on this understanding and the competitors’ prices the pricing is done.

15. See the attached “Regression Data I”. We are using the number of radios, TVs, and DVD players stocked to predict the profit, revenue, and cost for future periods. Based on the output,

One of the theories that is used to explain this trend in the market is the one exposed by Adam Smith in The Wealth of Nations. Smith generally assumed that the supply price was fixed but that it’s "merit" (value) would decrease as it’s "scarcity" increased, creating the law of demand (Smith 57). In this case we can

The R-squared of this new model is around 60%, even a little lower than the original model. The statistical significance of other independent variables keeps almost unaffected. The analysis of coefficients in this model with logarithms is not intuitive. So we still stick to the reduced linear model estimated in (a). We analyzed the OLS residuals to check for possible heteroskedasticity for a cross-sectional data set. We computed the fitted values of Price and OLS residuals in our model. Then residuals are sorted by fitted values of Price, and a scatter diagram of residuals is plotted against the fitted values in Figure 2. It is observed that all points are fairly scattered and there is no obvious pattern for the dependence of the residuals on the fitted values. We conclude that a linear model with homoskedastic errors is satisfactory for this data set. We evaluated the validity of this linear regression model by checking the accuracy of its prediction.

product matures, however, its price drops and demand is stabilized for a period of time,