Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 1.4CE
To determine
To evaluate if emergency roadside assistance for EVs be partitioned for the segment of customer’s commuting.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
XYZ company can manufacture their own products and sells them. They are able
to control the demand by changing the price that is determined by the equation
below. The company is thinking of maximizing their profit. The fixed cost is
$1,000 per month and the variable cost is $40 per unit. Find the number of units
that must be manufactured and sold monthly to maximize profit. (Demand D in
the equation is monthly) Hint: Profit = Total Revenue - Total Cost
2,700
5,000
p = $38 +
D
for D > 1
D2
1 Add file
Are there opportunities to combine volumes of spending from different busi- nesses, and standardize product requirements, reduce the number of suppliers providing these products, or exploit market conditions to receive better pricing?
The owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of going out of business. Sales have remained constant for quite some time and now he is looking at ways to cut expenses to stay in business. Which of the following expenses is his best choice to try to immediately reduce and save him meaningful dollars so he can remain in business? (Hint: First consider which ones he has ultimate control over?)
Rent expense
Utilities expense
Payroll expense
Shop insurance expense
Advertising expense
Chapter 14 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Knowledge Booster
Similar questions
- A local insurance company offers both home and auto insurance to four types of customers with the reservation prices listed in the figure below. Assume for simplicity that there is only one consumer of each type. Home Auto Bundle Customer A $90 $67 $157 Customer B Customer C Customer D $117 $87 $204 $103 $77 $180 $83 $52 $135 If the firm were to sell home and auto insurance separately, it would charge $83 for home insurance, $52 for auto insurance, and earn a combined revenue of $540. Determine the revenue the firm would receive if it used a pure bundle. Comparing the revenue of the pure bundle to the revenue of selling home and auto insurance separately, we can conclude that the reservation prices of the consumers must: O A. have no correlation B. be positively correlated C. be negatively correlated D. be serially correlatedarrow_forwardProcess mapping is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities, (waste) or delays within a process. Process mapping is valuable in purchasing, especially when attempting to streamline the flow of material or information between suppliers and a purchaser.arrow_forwardA company manufactures and sells x television sets per month. The monthly cost and price-demand equations are C(x)=74,000+40x and p(x)=250−x/20 0 ≤ x ≤ 5000. (A) Find the maximum revenue. (B) Find the maximum profit, the production level that will realize the maximum profit, and the price the company should charge for each television set. (C) If the government decides to tax the company $4 for each set it produces, how many sets should the company manufacture each month to maximize its profit? What is the maximum profit? What should the company charge for each set?arrow_forward
- CAFE (company average fuel economies) standards stipulate the avenge fuel efficiency (miles per gallon) of can produced by each manufacturer. That is, the average fuel efficiency of can sold by GM, Ford, Chrysler, Toyota, and so forth must be at least equal to the standard set by the government. Explain why such a system introduces both inefficiencies and inequities among different automobile manufacturers.arrow_forwardSort the following products into those priced with two-part tariffs, user charges only, or lump-sum access fees only: pay-per-view movies on cable TV, pay phones, Netflix, iTunes, country club membership, soda from vending machines, laundromats, cell phones, season ticket holders with seat rights.arrow_forwardAccording to International Data Corporation (IDC), the number of worldwide smartphone owners will soon exceed 3 billion. That number is expected to grow at nearly 10 percent per year for the next five years. While the actual cost of a smartphone is about $300, wireless carriers in many countries offer their customers a "free" smartphone with a two-year wireless service agreement. This pricing strategy is consistent with which of the following: Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. Two-part pricing Bundling Cross subsidization Second-degree price discriminationarrow_forward
- Manchester United TV Subscription (annual) Value to a non-Manchester United soccer fan Value to Manchester United fans Basic Package $30 $40 $35 $80 Deluxe Package The table above shows how much the a non-Manchester United fan and a Manchester United fan would pay for an annual subscription to Manchester United TV. The marketing team at Manchester United decides to offer two packages: a basic package that includes all games of the main, youth and women's teams (delayed by one day) and a deluxe package that includes the games (delayed by one day), recording of games from past seasons, and exclusive player interviews. Because there are many more non-Manchester United fans, the marketing team decides to offer the basic package for $30 to attract these fans. What is the maximum price they can charge for the deluxe package if they want Manchester United fans to subscribe to the deluxe package rather than also subscribing to the basic package.arrow_forwardQ1. Game console manufacturing determines that in order to sell Q units, the price per unit (in dollar) must decreased by the linear demand (the demand function) P(Q)= 800- 0.3Q($/device) The manufacturer also determine that the cost depends on the volume of production and includes a fixed part 500,000($) and a variable part 500Q , that is C(Q)= 500000+ 500Q What price per unit must be charged to get the maximum profit?arrow_forwardResearch has found that used-car salesmen often offer women buyers a higher price than male buyers. This is most likely because: (a) the second-hand car market allows first-degree price discrimination. (b) the second-hand car market allows second-degree price discrimination. (c) the second-hand car market allows third-degree price discrimination. (d) used-car salesmen usually find it easier to determine the reservation prices of male buyers than of women buyers.arrow_forward
- A firm makes a product whose contribution per unit is $2,000 and takes 100 hours to make (machine time). A component of this product has a marginal cost of $400 and takes 10 hours to make (machine time). This component could be purchased from an external supplier. Assuming the firm is working at full capacity, what is the maximum price that the company is willing to pay to buy the component from the external supplier?arrow_forwardA company manufactures and sells x television sets per month. The monthly cost and price-demand equations are C(x)=75,000+60x and p(x)=300−x/30, 0≤x≤9000. , 0≤x≤9000 (A) Find the maximum revenue. (B) Find the maximum profit, the production level that will realize the maximum profit, and the price the company should charge for each television set. (C) If the government decides to tax the company $4 for each set it produces, how many sets should the company manufacture each month to maximize its profit? What is the maximum profit? What should the company charge for each set?arrow_forwardThe owner of an independent full-service lodging property has reviewed your proposal for the installation of a property management system. The proposal is thorough; it includes all the necessary steps outlined in this chapter. However, the owner says that due to economic conditions at this time, we have to cut back and purchase only five of the eleven modules in the proposal. Which of the five modules would you maintain? Justify your decision. a. Reservations b. Revenue Management c. Registration d. Room Status e. Posting f. Call Accounting g. Back Office h. Housekeeping i. Food and Beverage j. Marketing and Sales k. Night Audit *Write in at least 1000 count of words.*arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning