Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 14, Problem 26APA
(a)
To determine
The main objective of Company U’s marketing plan.
(b)
To determine
Whether the marketing expenditure is fixed cost or variable cost.
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Students have asked these similar questions
At the beginning of the year 2021, three friends, Ebo, Michael and Joseph decided to set up a
company that produces a special kind of fruit juice called BB fruit juice in a city called St.
Botch. As fresh graduate from the University of Professional Studies, Accra, you were
employed as the firm's general manager in charge of the day to day running of the company.
In order to make informed decisions about the firm's product, you employed an economist,
who estimated the demand curve of the firm's product by using information from 30
supermarket as follows:
Q$ = 99.5 – 2.5P, + 1.25P, – 0.21 + 0.15N + 0.04A
Where Qg is the quantity demanded of BB fruit juice in bottles, P, is the per pottle price of BB
fruit juice, P, is the per pottle price of Blue Sky, I is the per capita income of the people of St.
Botch, N is the number of consumers and A is amount of money the company spends on
advertising.
In addition, the economist also estimated the supply function for the product as:
Qi = -78 +…
4. An economic consultant provides a firm's marketing manager
with the following estimate of the demand function for the firm's
product:
Qx = 1240 – 3.13Px - 0.611P, + 2.01M + 0.30AX
Px = the price of the firm's product per unit; Py = the price of
another good per unit; M = money income for the average
consumer; Ax = advertising costs for the firm's product.
The demand function shown above indicates that:
A. The firm's good (X) and the other good (Y) are substitutes and
that X is an inferior good
B. The firm's good (X) and the other good (Y) are complements
and that X is an inferior good
C. The firm's good (X) and the other good (Y) are substitutes and
that X is a normal good
D. The firm's good (X) and the other good (Y) are complements
and that X is a normal good
Practice #6
Francine is a a dental floss tycoon living in Montana. She faces the following demand curve for her product:
Price ( in $/unit) Quantity demanded
2.50 1000
2.20 2000
1.90 3000
1.60 4000
1.30 5000
1.00 6000
.70 7000
.40 8000
Francine has been told by her brother, who is currently taking a marketing class, that if she lowers her price by one increment(for example; changing price from .70 to .40, she will capture market share and increase total revenue. All of her advisors within the company have assured Francine that her brother's advice may be correct, BUT the above demand curve will not change. Assume that Francine knows the above demand curve will not change and is also considering her brother's advice. The prices can only change in…
Chapter 14 Solutions
Macroeconomics
Ch. 14.1 - Prob. 1RQCh. 14.1 - Prob. 2RQCh. 14.1 - Prob. 3RQCh. 14.2 - Prob. 1RQCh. 14.2 - Prob. 2RQCh. 14.2 - Prob. 3RQCh. 14.2 - Prob. 4RQCh. 14.2 - Prob. 5RQCh. 14.3 - Prob. 1RQCh. 14.3 - Prob. 2RQ
Ch. 14.3 - Prob. 3RQCh. 14.3 - Prob. 4RQCh. 14.3 - Prob. 5RQCh. 14 - Prob. 1SPACh. 14 - Prob. 2SPACh. 14 - Prob. 3SPACh. 14 - a. Do you expect other firms to enter the Web...Ch. 14 - Prob. 5SPACh. 14 - Prob. 6SPACh. 14 - Prob. 7SPACh. 14 - Prob. 8SPACh. 14 - Prob. 9SPACh. 14 - Prob. 10APACh. 14 - Prob. 11APACh. 14 - Prob. 12APACh. 14 - Prob. 13APACh. 14 - Prob. 14APACh. 14 - Prob. 15APACh. 14 - Prob. 16APACh. 14 - Prob. 17APACh. 14 - Prob. 18APACh. 14 - Prob. 19APACh. 14 - Prob. 20APACh. 14 - Womens Golf Clubs A quarter of golfers today are...Ch. 14 - Prob. 22APACh. 14 - Prob. 23APACh. 14 - Prob. 24APACh. 14 - Prob. 25APACh. 14 - Prob. 26APACh. 14 - Prob. 27APACh. 14 - Prob. 28APACh. 14 - Prob. 29APA
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