Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 1, Problem 4MC
To determine
The negative impact on the hotels from not increasing the price of rooms when there is higher
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Tell me about the market for vaccines. Who are the buyers and sellers? Again, what if there is no virus or pandemic. Elaborate on quantity demand versus quantity supplied and shifts of curve. What happens to price. What about profits? What about uncertainty!
What affects the desirability of a product?
Products become more desirable when
A.
professional athletes
use a product because consumers who use the same product may feel closer to famous people.
B.
celebrities
use a product because consumers who use the same product may feel more fashionable.
C.
movie stars
use a product because consumers perceive them to be particularly knowledgeable about it.
D.
both a and b.
E.
all of the above.
Selling T-shirts is easy. Consumers spend at least $15 billion a year on them. Moreover, the inventory is easy to store, doesn’t spoil, and is compact. On the surface, a great business.
But there’s a catch—everybody and his brother sells T-shirts. Every beach resort has dozens of T-shirt shops. And they sprout like weeds at every major sporting or concert venue. And then there are all the online sites that offer custom designs and quick delivery. So, the competition is intense. This makes it near impossible for any T-shirt shop to raise the price of its T-shirts, much less hold on to profits. The owner of a T-shirt shop in South Padre Island, Texas, lamented, “Every day you have to compete with other shops. And if you invent something new, they will copy you.”
Questions:1.What determine the ability to make profit on this market of T-Shirts?
Chapter 1 Solutions
Managerial Economics: A Problem Solving Approach
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