Principles of Microeconomics California Edition 2nd Edition
2nd Edition
ISBN: 9780393622089
Author: Dirk Mateer, Lee Coppock
Publisher: W. W. Norton
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Chapter 3, Problem 6SP
To determine
Complementary goods and how it benefits the consumers.
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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.
Alternatives
Fort Alden
Central City
Answer
Roseville
Decision Table
Strong Market
75,000
68,000
105,000
Step 2 of 2: What would Sydney's anticipated payoff be for the maximax strategy?
State of Nature
Fair Market
48,500
52,000
76,000
Poor Market
25,000
27,000
30,000
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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…
It’s increasingly clear that many postings on blogs and product reviews on Web sites are fake or are posted there to manipulate consumers’ opinions. How big a problem is this if consumers increasingly look to consumer-generated product reviews to guide their purchase decisions? What steps, if any, can marketers take to nip this problem in the bud?
Chapter 3 Solutions
Principles of Microeconomics California Edition 2nd Edition
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