Price floor

ECON2103 – Problem Set (1) Multiple Choice Questions: 1. Understanding opportunity cost You work as an assistant coach on the university basketball team and earn $12 per hour. One day, you decide to skip the hour-long practice and go to the local carnival instead, which has an admission fee of $7. The opportunity cost of skipping practice and going to the carnival, valued in dollars is _________. 1) 2) 3) 4) $20 $12 $19 $7 2. Determining opportunity cost Winona is deciding whether to buy a suit

Wisner, more problems than he faced during the team’s losing era in the early 1990s. For one thing, increasing game-day attendance is squeezing the town of Stephenville, Texas and the campus. Complaints are arising over parking, seating, concession prices, and even a shortage of programs at some games. Dr. Wisner, once again, turns to his stadium manager, Hank Maddux. This time, he needs a guaranteed revenue stream to help fuel the stadium expansion. One source of income could easily be the high-profit

completing the Blue Sheet 59. The issue of pricing does not need to be addressed during your brand design efforts. a. True b. False 60. When deciding on price you should consider a. What the market will bear b. Your production costs c. The price your competition will charge d. All of the above 61. As a general guideline, your selling price should be approximately what percent more than your cost of goods? a. At least 50% more b. At least twice the cost c. Two to three times the production cost

improved and with a slight difference. The reason I’m targeting thrill seekers is because I think this is what going to blow their minds when it comes to a good ride. So the marketing mix, the marketing mix is a combination of the four P’s product price promotion and place, these are the things you need to consider when creating a new ride or facilities. This method is how you show your customers what the product or service is, also you need to be able to draw them in by advertising it well and letting

Explicit costs are opportunity costs that involve direct monetary payment by producers. The opportunity cost of the factors of production not already owned by a producer is the price that the producer has to pay for them. For instance, a firm spends $100 on electrical power consumed, their opportunity cost is $100. The firm has sacrificed $100, which could have been spent on other factors of production. Now lets look at some real

Ready To Eat Cereal 1) The Big Three firms, Kellogg, General Mills, and Philip Morris, formed practically an oligopoly in the RTE cereal market. Their price and cost levels moved in lockstep, following signals sent mostly by the biggest player, Kellogg, while their tactics could be used against outside competition, as suggested in the scenario below. Although RTE cereal is a basic food item and production technology stabilized for about half century, the industry had effective barriers to entry

P4 - Describe the key benefits and opportunities presented by internet marketing activity for Viola Drinks Ltd. and again how this help formulate and change the marketing mix for the business. In this assignment I will describe the fundamental benefits and opportunities presented by internet marketing activity for Viola Drinks Ltd. and furthermore how this helps formulate and change the marketing mix for the business. Internet marketing brings a lot of opportunities and benefits to businesses

you the margin of safety of -$22,000.00. Meaning you can cut the sales of computer paper by $22,000.00 and not sustain a loss. To find the break-even point for napkins, you use the same formula. The fixed cost is still $420,000.00. The selling price of napkins is $7.00. The variable cost is $4.50. $7.00 minus $4.50 is $2.50. So then you take $420,000.00 and divide it by $2.50 to find the breaking point of $168,000.00. The company will have to sell $168,000.00 to break even in sales. The margin

# What is price? The answer depends upon whether the concept is viewed from the market place or from the stand point of costs. Consumers view price as a monetary expression of the value for dimensions of quality or features benefits for a given products or services. This relationships can be expressed as follows: Price = Quality Value In other words , Price is the payment for quality as interpreted by the valuation of the marketplace. From a psychological

module, the cost of a hydrostatic testing unit was calculated as E1.799,26. With a mark-up of 20%, the unit selling price of the Company totalled up approximately E2.160,00, more than the price of the domestic producer. Step 3: Target Costing According to customer survey results, the selling price was calculated to be E1.803,75 per testing unit and it was decided to set a market price for testing unit that was 7.5%, but which included a 20% profit for the company. Step 4: Cost breakdown on cost drivers