You own a small retail business that produces a product, Ask an Expert

Economics

You own a small retail business that produces a product that is slightly different from that of your many competitors. Your firm is currently making an economic profit. The absolute value of the elasticity of demand for your product at the current price is less than one (i.e., inelastic).

a) What pricing strategy would you suggest, and why?

b) What would you expect the long-run future of your business to be, and why? Use graphs to explain your answer.

c) What long-run strategy would you suggest for your firm, and why? Use a graph to explain your answer.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9522942

Have any Question?Write your Review or question?

Related Questions in Business Economics

The managers of a car store observe that 70 of all the cars

The managers of a car store observe that 70% of all the cars they sell are bought by people who already own a car. They also observe that 50% of the customers who come to the store but do not buy a car, already own one. ...

1 the demand for good x is given by qxdnbsp 6000 - frac12

1. The demand for good X is given by: Q X d = 6,000 - ½ P X - P Y + 9P Z + 1/10M Research shows that the prices of related goods are given by P Y = $6,500 and P Z = $100, while the average income of the individuals ...

Please discuss the followingas demand increased for these

Please discuss the following: As demand increased for these mortgage backed securities, lenders reacted by relaxing their approval standards to increase production. No longer were "all" borrowers required to document the ...

Malcolm moore single had medical expenses of 5000 last year

Malcolm Moore, single, had medical expenses of $5,000 last year. His AGI last year was $30,000. He was reimbursed $4,500 this year by his insurance company. Malcolm claimed the standard deduction last year. What amount m ...

Compute the probability for a random variable x with

Compute the probability for a random variable X with µ=10 and σ=2. Calculate P(X

What steps do i take to calculate if a person bought 1

What steps do I take to calculate, If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at more than $950? Please explain the steps and you can use di ...

1 the following table shows the prices and quantity

1. The following table shows the prices and quantity demanded of Alberta wheat in 2014 and 2015. The change in 2012 resulted from exceptional weather, resulting in a bumper crop. 2014 2015 Bushels demanded 1.74 billion 1 ...

Calculate the size of the surplus or shortage of hours

Calculate the size of the surplus or shortage of hours created by the imposition of the minimum wage ($19) Related info: Assume that the market for unskilled labour in Australia is a competitive market and can be describ ...

At age 30 you decide to start saving for retirement you

At age 30 you decide to start saving for retirement. You wish to retire at age 65, and you expect to need an income of $2,500 per month for 25 years. If your savings earns an interest rate of 0.64% per month, how much wi ...

Using one-sample hypothesis testingin a high school marks

Using one-sample hypothesis testing. In a high school, Mark's class took the admission test for business school and averaged 83.4. For all the 10 classes taking the same test, their scores are (including Mark's): 78.2, 9 ...

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