concentration ratio

Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change in demand? What does your adjustment process imply about the CR for the industry? Now consider that the industry has 20 firms but the CR for the industry is 80% instead of 30%. How would you describe this industry? What are some reasons why this industry has a high CR while the other industry had a low CR? Is it possible for smaller firms to thrive and profit in such an industry? How? Contrast the effects on market efficiency if the dominating firms ... click for more

10537 Q ECO - "Z-Best Pizza recently decided to raise its regular price on large pizzas..."

(See attached file for full problem description) --- 10537 Q Eco Price Elasticity Z-Best Pizza recently decided to raise its regular price on large pizzas from $9 to $12 following increases in the cost of labor and materials. Unfortunately, sales dropped sharply from 8,100 to 4,500 pizzas per month. In an effort to regain lost sales, Z-Best ran a coupon promotion featuring $5 off the new regular price. Coupon printing and distribution costs totaled $100, and caused only a modest increase in the typical advertising budget of $2,400 per month. The promotion was judged a success as it proved highly popular with consumers. In the period prior to expiration, coupons were used on 40%... click for more

DEMAND CURVE & PE OF DEMAND

If you were asked to estimate the market demand curve and figure the existing Price elasticity of demand for a business' product, what steps would you need to take and what problems might you come across in collecting the data?Would you need to make any simplifing assumptions and what would those be? Would you have problems in getting the data in the real world? Does time play any role in this analysis and what would be the sources of your data, etc?

Price elasticity

What implicit assumptions would an researcher make regarding price elasticity of a magazine that was losing millions of dollars a yr and the CEO suggested raising the subcription price by 50%? The owner feels by raising prices you would lose a large % of subscribers.

Law of economics

What actions do you feel that cigarette owners took to avaoid bankruptcy when they faced LARGE punitive penalties after losing biilons of dollars from class actions suits? Why did this action succeed?