Please answer 13 and 14 13. Acme’s best-selling product sells for $50. Its sales and marketing team is trying to decide how to price the product for next year in order to achieve the maximum total revenue from the product, all marketing effects being the same in both years. After some research it determines that its price elasticity is 0.75 at the reasonable price range around its current price. In this situation, Acme should Group of answer choices a. Raise prices b. Match its nearest competitor’s price c. Reduce prices d. Keep prices the same 14. Suppose an investment project has an NPV of $75 million if it becomes successful and an NPV of –$25 million if it is a failure. What is the minimum probability of success above which you should make the investment? Group of answer choices a. 0.50 b. 0.25 c. 0.33 d. 0.10
Please answer 13 and 14 13. Acme’s best-selling product sells for $50. Its sales and marketing team is trying to decide how to price the product for next year in order to achieve the maximum total revenue from the product, all marketing effects being the same in both years. After some research it determines that its price elasticity is 0.75 at the reasonable price range around its current price. In this situation, Acme should Group of answer choices a. Raise prices b. Match its nearest competitor’s price c. Reduce prices d. Keep prices the same 14. Suppose an investment project has an NPV of $75 million if it becomes successful and an NPV of –$25 million if it is a failure. What is the minimum probability of success above which you should make the investment? Group of answer choices a. 0.50 b. 0.25 c. 0.33 d. 0.10
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 10E
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Question
Please answer 13 and 14
13. Acme’s best-selling product sells for $50. Its sales and marketing team is trying to decide how to
Group of answer choices
a. Raise prices
b. Match its nearest competitor’s price
c. Reduce prices
d. Keep prices the same
14. Suppose an investment project has an NPV of $75 million if it becomes successful and an NPV of –$25 million if it is a failure. What is the minimum probability of success above which you should make the investment?
Group of answer choices
a. 0.50
b. 0.25
c. 0.33
d. 0.10
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