menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

II. Competitive Pricing Retailers often sell different brands of competing products. Depending on the joint demand for the products, the retailer may be able to set prices that regulate demand and, therefore, influence profits. Suppose HOME-ALL, Inc., a national chain of home improvement retailers, sells two competing brands of motion sensor outdoor light sets, Dark-B-Gone 100 and Croyle & James, which the chain purchases for $8 per set and $10 per set, respectively. HOME-ALL’s research department has determined the following two monthly demand equations for these light sets: D = 120 − 40 d + 30 c and C = 680 + 30 d − 40 c where D is hundreds of Dark-B-Gone 100 light sets demanded at $ d per set and C is hundreds of Croyle & James light sets demanded at $c per set. For what prices should HOME-ALL sell these light sets in order to maximize its monthly profit on these items? To answer this question, complete the following. Write a brief report to management that details your pricing recommendations and justifies them.

BuyFindarrow_forward

Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
Publisher: Cengage Learning
ISBN: 9781305108042

Solutions

Chapter
Section
BuyFindarrow_forward

Mathematical Applications for the ...

11th Edition
Ronald J. Harshbarger + 1 other
Publisher: Cengage Learning
ISBN: 9781305108042
Chapter 14, Problem 4EAGP2
Textbook Problem
1 views

II. Competitive Pricing

Retailers often sell different brands of competing products. Depending on the joint demand for the products, the retailer may be able to set prices that regulate demand and, therefore, influence profits.

Suppose HOME-ALL, Inc., a national chain of home improvement retailers, sells two competing brands of motion sensor outdoor light sets, Dark-B-Gone 100 and Croyle & James, which the chain purchases for $8 per set and $10 per set, respectively. HOME-ALL’s research department has determined the following two monthly demand equations for these light sets:

D = 120 40 d + 30 c   and   C = 680 + 30 d 40 c

where D is hundreds of Dark-B-Gone 100 light sets demanded at $ d per set and C is hundreds of Croyle & James light sets demanded at $c per set. For what prices should HOME-ALL sell these light sets in order to maximize its monthly profit on these items?

To answer this question, complete the following.

Write a brief report to management that details your pricing recommendations and justifies them.

This textbook solution is under construction.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started