Pricing Strategies

According to Cahner’s In Stat Group, the number of worldwide wireless phone subscribers will soon reach 1 billion. In the US alone, the number of subscribers is expected to rise by 17 million per year for the next 5 years. Contributing to the extensive growth are lower prices, larger geographic coverage, prepaid services, and Internet enabled phones. While the actual cost of basic wireless phone is about $75, most carriers offer their customers a free phone with a one year service agreement. Is this pricing strategy rational? Explain.

Pricing Strategy

You own a franchise of rental car agencies in Florida. You recently read a report indicating that 80% of all tourists visit Florida during the winter months in any given year, and that 60% of all tourists traveling to Florida by air rent autos. Travelers not planning ahead often have trouble getting a rental due to high demand. However, during non winter months tourism drops dramatically and travelers have no problem getting rental car reservations. Determine the optimal pricing strategy and explain why it is the best pricing strategy.

Government in the Marketplace

In 2002, a well known conglomerate that manufactures a multitude of noncompeting consumer products instituted a corporate wide initiative to encourage the managers of its many divisions to share consumer demographic info. However, since the initiative, the CEO has noticed that less info is available than ever. Why do you think the CEO’s plan backfired?

Monopolistic and Diseconomies of Scale

1. What is "monopolistic" about monopolistic competition? 2. Explain why some firms may suffer diseconomies of scale .

Discuss the proper roles and limitations of government and public policy in facilitating growth and development as practiced in developing nations.

Discuss the proper roles and limitations of government and public policy in facilitating growth and development as practiced in developing nations. What are the potential problems of economic transition from a planned economy to a competitive free-market economy. Please discuss in details.