(Answered) Question1- from our class discussions on pricing chapters

Management Studies

Question:

1.- From our class discussions on pricing (Chapters 10 and 11), explain the importance of Long Run Average Cost (LRAC), and the importance of the reservation price of the segment that values the product the most, when a firm is setting long term prices.

2.- Explain the terms, "vertical and horizontal channel conflict."

3.- Explain the importance of getting innovative new products to market quickly.

4.- Explain why Rolls Royce doesn't sell their cars in a lot more dealerships like Ford and Chrysler do.

5.- In the book, the slides, and the videos there are a pair of diagrams which show how a marketing intermediary reduces the number of transactions in a market. Describe two of the other eight ways that marketing intermediaries earn the markup that they apply to the goods that they handle.

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