Explain Product policy

Working explanation of "product policy" as related to the Marketing Mix.

Economics of Industrialization

1. The monthly demand for electricity for a small business can be described by the demand function q = 30000−200000p, where demand is measured in kilowatt-hours (kWh) and price is measured in $/kWh. For the electricity company, the marginal cost of providing electricity is $0.02/kWh. (a) What is the profit-maximizing condition the electricity company should follow if they are setting a single uniform price (same price for all units) for electricity to the firm? Determine the profit-maximizing price and quantity set by the electricity company. (b) The electricity company decides to use block-pricing. In place of a single uniform price the company sets a price p1 for the first q1 ... click for more

Random numbers

A normal distribution has a mean of 500 and a standard deviation of 50. A manager wants to simulate 2 values from this distribution, and has drawn these random numbers: -0.6 and 1.4. What are the 2 values respectively?

Problem Set

1. You are given the following individual demand information that represents the demand for typing by students at a local college: Price per page Tom George Lisa Market $1.00 20 30 7 ____ $1.50 15 26 6 ____ $2.00 12 22 5 ____ $2.50 9 20 3 ____ $3.00 7 18 2 ____ $3.50 5 15 1 ____ $4.00 3 10 0 ____ $4.50 2 6 0 ____ $5.00 1 4 0 ____ a. Give the market demand for pages per semester at each price. b. What is the price elasticity of demand between $2.00 and $2.50? c. What is the relationship between price elasticity of demand and the effect of raising prices on total revenues? 2. You are given the following individual supply information for typin... click for more

Problem Set

1. Explain why personalized pricing or first degree price discrimination is usually more profitable than menu price. Why, if this is the case, do companies use menu pricing? 2. Companies often sell multiple products (e.g., such as PepsiCo produces and sells both soft drinks and snack foods such as Fritos and Lays potato chips). Discuss at least two ways that this strategy can increase value. What dimension it add to pricing strategies? 3. You are the manager of Copies R Us (CRU). The only other copy store in the immediate area is Carbon Copy (CC). CC is considering buying a color copier and offering color copying services. If CC buys the color copier, its profits will increase by $15... click for more