Businesses often advertise that they sell "directly from the factory" and thus they "cut out the middleman." the implication of these claims is that businesses can then sell to consumers at lower prices, because they don't have to add in the costs of the middleman. Does "cutting out the middleman" actually lead to lower prices for consumers? Explain why or why not.
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Businesses often advertise that they sell "directly from the factory" and thus they "cut out the middleman." the implication of these claims is that businesses can then sell to consumers at lower prices, because they don't have to add in the costs of the middleman.
Does "cutting out the middleman" actually lead to lower prices for consumers? Explain why or why not.
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- Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price of $130 each. Deidre is willing to pay $200 for a rocking chair. However, the government believes that rocking chair manufacturers should receive more money, and set the lowest legal price rocking chairs can be sold for at $250. At the market price, Sven is willing to sell a rocking chair to Deidre, and Deidre is willing to buy a rocking chair from Sven. Unfortunately, with the new legal minimum, Sven and Deidre cannot trade with one another, and miss out on additional gains from trade. Which of the effects of a price control best fits the scenario above? A)Deadweight Loss B) Reduction in Quality C) misallocation of resources D)wasteful increase in QuanityExplain how the price leader determines a profit-maximizing price.According to the Hanson Production: Pricing for Opening Day Case Study by Peter Famiglietti, Should the opening-day price be based on cost, demand/supply, the competition, or a profit target?
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- Take this hypothetical situation: Suppose that the supply side of the market for for electric energy is comprised of two sellers: Seller 1 and Seller 2. Let P be the price of one unit of electric energy, and Q be the quantity of electric energy. Seller 1 owns a hydropower factory with a constant marginal cost of $3 and can produce a maximum of 10 units of electric energy. In addition, the hydropower plant has a requirement of a minimum of 3 units of electric energy. Seller 2 owns a solar factory to produce electric energy. This factory has a constant marginal cost of $5 and can produce a maximum of 5 units of electric energy. With this given information, please sketch the market supply by aggregating the two individual supplies. Please label the graph clearly for slopes, kinks, intercepts, etc.Take this hypothetical situation: Suppose that the supply side of the market for for electric energy is comprised of two sellers: Seller 1 and Seller 2. Let P be the price of one unit of electric energy, and Q be the quantity of electric energy. Seller 1 owns a hydropower factory with a constant marginal cost of $3 and can produce a maximum of 10 units of electric energy. In addition, the hydropower plant has a requirement of a minimum of 3 units of electric energy. Seller 2 owns a solar factory to produce electric energy. This factory has a constant marginal cost of $5 and can produce a maximum of 5 units of electric energy. A) With this given information, please sketch the market supply by aggregating the two individual supplies. Please label the graph clearly for slopes, kinks, intercepts, etc. B) Suppose that the price of geothermal increases. On the graph drawn in part A, show precisely how the supply curve changes. C) Suppose that the price of geothermal increases. In a market…Everyone shops for things they need for themselves and for gifts for others. Imagine you are taking an online class, and you are looking to buy a new computer because your old one died. The class starts in two days. The market for computers is very competitive. There are several brands that have similar characteristics, such as storage capacity, processor speed, number of USB ports, etc., but you have owned one that you liked, and you want to buy that same brand, the X-Mark. You have a budget of $1,750. One popular store has the brand you like on sale for $999.99 because other stores sell them for that price. You have a friend at that store who tells you that the store paid $925 for that computer. Please evaluate and explain the willingness to pay, consumer surplus (calculate), demand, producer surplus (calculate), cost, and willingness to sell this transaction. Define these terms in your explanation, not as separate definitions. Incorporate the meaning into your narrative so that…
- Eighty percent of all navel oranges grown in the US come from California. In the winter of 1998 a series of storms in California damaged about 70% of the navel orange crop. Explain how this severe weather most likely impacted each of the following markets: a. California-grown navel oranges. b. Imported navel oranges. c. Commercially prepared fruit salad (that contained navel oranges). Please answer Step by step. Answer must be correct.Do all step by step.Don,t copy from any where. Must answer follow question.Starting a gluten free and nut free restaurant has been a lifelong dream of Sydney Quintero, since he realized his dietary restrictions as a teenager. Now, that Sydney has graduated with his business degree, he is pursuing his dream. He has researched geographic locations around his state and selected three different cities, Fort Alden, Central City and Roseville, as possibilities for his flagship restaurant. The market for gluten/nut free products often changes due to health awareness, current trends and general demographic changes in population. Sydney’s marketing research has given him some estimates for the different locations as described in the decision table below.Decision Table State of Nature Alternatives Strong Market Fair Market Poor Market Fort Alden 75,00075,000 49,50049,500 35,00035,000 Central City 70,00070,000 54,00054,000 29,00029,000 Roseville 115,000115,000 80,00080,000 40,00040,000 Step 2 of 2 : What would Sydney’s anticipated payoff be…Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best for its consumers in the long run?