(Answered) Garam

Economics

GaRam is a sales manager of an appliance store and she sometimes visit outlets run by competing stores. Six months ago, she noticed that rivals' prices were very close to the prices at her store. However, in the last six months, her competitors have lowered their prices to about 15 percent below the prices at her store. Nevertheless, the total unit sales at her store have increased slightly during this time period. Assuming rational buyers and no deceptive advertising, what is the rational explanation for this?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92477532
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

The table to the right shows the results of a survey in

The table to the right shows the results of a survey in which 2585 adults from Country A, 1116 adults from Country B, and 1064 adults from Country C were asked if human activity contributes to global warming. Complete pa ...

Ross textiles wishes to measure its cost of common stock

Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $57.50. The firm expects to pay a $3.40 dividend at the end of 2013. The dividends for the past 5 years are shown ...

Electric car technology has been improving and the us shale

Electric car technology has been improving and the U.S. shale gas oil supply has been increasing. What will be the impact on the crude oil market price? What will be the impact on the gas-burning auto market price? Expla ...

A research a research institute conduct the clinical trials

A research a research institute conduct the clinical trials of a method designed to increase the probability of conceiving a boy. Amount 170 to babies born to parents using the method. 146 for boys. Identity identify the ...

What type of monopoly is sydney water describe the main

What type of monopoly is Sydney Water? Describe the main characteristics of this monopoly type in general and in relation to Sydney Water.

What is the usefulness of the total revenue test for price

What is the usefulness of the total revenue test for price elasticity of demand? What are the factors that affect price elasticity of demand and price elasticity of supply? What are some applications of each?

Income effects depend on the income elasticity of demand

Income effects depend on the income elasticity of demand for each good that you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elastici ...

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 98% confident that the sample mean is within two units of the population mean. Assume a standard deviation of 7.55 in a normally distributed population.

How do you find the minimum sample size when population

How do you find the minimum sample size when population standard deviation is anywhere between 14 to 24, and the half-width B desired could be anywhere between 2 to 7?

Assume p 65 - 2q the cost per additional unit mc is zero

Assume P = 65 - 2Q. The cost per additional unit (MC) is zero for the first five units, and then $5 per unit after that. There are fixed costs of $50. Once the optimal level of output is determined, how much profit does ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert