Charging a price of $4.99 instead of $5.00 is an example of what type of pricing strategy? Charging $4.99 instead of $5.00 is an example of O A. yield management. B. cost-plus pricing. OC. a two-part tarif. D. odd pricing. O E. price discrimination.
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- A local hospital offered to buy firm A for $5,000, and the offer was refused. However, many observers now perceive that firm A is “in play” and may be sold if the right offer comes along. a. In successful transactions, purchasers have typically paid ten times current profits. How much would firm A be worth to a buyer from outside the industry? b. Would you expect that firm B would be willing to pay more or less than an outside buyer? c. What is the most firm B would be willing to pay for firm A?A6 3) Pricinga) Provide a real-world example of third-degree price discrimination (with a hyperlink to the example). Discuss what prevents re-sale in your example (i.e. why can’t people who pay a lower price sell the good to people who face a higher price?). b) Provide a real-world example of a seller offering a “decoy option” (with a hyperlink to the example). Discuss how you expect the demand for the other options to change if this decoy option was removed from the market by the seller.At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price discriminate).Students with Early Classes Students without Early ClassesCoffee $0.70 $0.60Banana $0.50 $1.00The marginal cost of coffee is $0.10. The marginal cost of a banana is $0.40. Is bundling more profitable than selling separately? If so, what price should be charged for the bundle?
- a) What is a tie-in contract and how does that differ from bundle pricing? b) What is a conglomerate merger and why are they more likely to be approved? c) Limit pricing is a strategy where a firm sets a low, but profitable, price to discourage entry. How does that differ from predatory pricing?The following table presents the valuations that 5 different consumers have for 2 different products. The production costs are $10 per unit of good A and $10 per unit of good B. The firm producing them can choose to price them independently or using a bundling strategy. What is the profit the firm will realize, if it prices optimally? VALUATIONS Product A Product B Consumer 1 5 95 Consumer 2 10 90 Consumer 3 50 50 Consumer 4 80 20 Consumer 5 95 5 ANSWER SHOULD BE 410. I will like if it is right! showing my support. Thank you.Ma1. Problem II Q1. If adopting a single price strategy (same price to all buyers), what price will be charged and what profit will be made? Explain Q2. If adopting a fwo-part pricing strategy. (i) what price will be charged (specify the Fixed fee and the Per-unit fec). (ii) what profit will be made?
- Please answer fast A profit-maximizing shop in a town has a constant marginal cost of $10 and can sell to two types of customers: students and non-students. The shop faces a demand by students given by QS = 50‒P and a demand by non-students given by QN = 190‒3P. Which price would students pay under uniform pricing? Which price would students pay if the seller could successfully engage in price discrimination?1. Hertz and other car rental companies charge much more to rent luxury cars such as Ferraris andBentleys than to rent compact cars such as the Toyota Yaris or Chevrolet Sonic. Is this pricediscrimination? Explain 2. A Grocery store issued frequent-buyer cards to willing customers and collected information about their purchases. How should a manager use this information to offer customized discount coupons to individuals?Suppose a manufacturer and its retailer face the problem of double marginalization. If the manufacturer sets the wholesale price equal to its marginal cost c and in addition, requires the retailer to pay a fraction α (between 0 and 1) of its profit. 4.a Write down the retailer’s profit maximization problem. Will this practice solve the double marginalization problem? (That is, will this practice maximize their joint profit?) 4.b Suppose the retailer is required to pay a fraction of α of its sales (i.e., total revenue). Write down the retailer’s profit maximization problem. Will this practice solve the double marginalization problem?
- List and discuss the key characteristics of organi-zational buying that make it different from con-sumer buyingAn incumbent firm supplies a consumer by writing a contract in period 1 for delivery in period 2. The contract stipulates a price of $700 and a breach of fee of $500. The consumer values the good at $1000 and the incumbent’s cost equals $400. A potential entrant firm has uniformly distributed costs [0, 800]. If the entrant enters, there is Bertrand price competition. How much additional profit does the incumbent make because of the contract? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.. When Chinese automakers began exporting cars, rather thanfocusing on developed nations in the West, they shippedautos to emerging markets in countries such as Algeria, Russia,Chile, and South Africa. In these markets, even used vehiclesfrom multinational manufacturers are relatively scarce—andrelatively expensive. The Chinese automakers, who prioritizelow cost rather than design or even safety, applied a penetration-pricing strategy. A woman in Santiago, Chile, who boughta new Chery S21 explained, “The price factor is fairly decisive.I paid $5,500 new and full. Toyota with similar features costsaround $12,000.” Why do you think Chinese automakerschose that pricing strategy? Do you think it was successful?As Chinese regulators pressure these manufacturers to maketheir cars safer, do you think they will be able to keep theirprices low compared with those of the international automakers? Why or why not?26