Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter 11, Problem 9CACQ
To determine
Whether a profit-maximizing firm would never use something like dice or roulette wheel to help shape the pricing decisions is to be explained.
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Describe how marginal analysis, by avoiding sunk costs, leads to better pricing decisions.
Many economists argue that rivalry in goods is not a real difference, but just a pricing problem. What do they mean?
• If there are too few individuals in a non-rival good, then it can become rivalrous. The way to solve this is raise price and reduce the number of users.• If there are too many individuals in a non-rival good, then it can become rivalrous. The way to solve this is raise price and reduce the number of users.If there are too few individuals in a non-rival good, then it can become rivalrous. The way to solve this is raise price and raise the number of users.• If there are too many individuals in a non-rival good, then it can become rivalrous. The way to solve this is lower price and increase the number of users.
Could companies implementing two pricing strategies at the same time? For instance, cost based pricing and competition based pricing
Chapter 11 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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