Assignment2 economics Essay Example | Topics and Well Written Essays - 1250 words

Assignment2 economics - Essay ExampleThe product is target at middle income earners so a higher mark up can sc atomic number 18 them away impart raise mark up gradually ground on request.b) A new technology you involve developed and recently patent. The market has been awaiting this product and its purchase by a customer will stick out a tremendous competitive advantage. The only users will be very large Fortune cc companies who keep back deep pockets and are anxious for the competitive advantage your product yields. cause The product is based on a new technology so there are currently no competitors. visible rights prevents the entry of competition hence 80% of mark up. Besides the buyers are affordable Fortune cc companies waiting to double their returns based on this product. Besides the tremendous expected demand.c)You own a railway system comp both. You are about to junk some old boxcars. However, there is a surprisingly tremendous demand for boxcars to be used as suites , just like the ones at Bryce Memorial Stadium at the University southeast Carolina.Reason The 30 % mark up due to the demand for the product. But the product is not patented and there is competition from separate railroad companies hence only 30% will raise or lower to offer a competitive price as the boxcars will be junked if not.f) Your company owns a 5-acre tract of land on a hill. ... product is not patented and there is competition from other railroad companies hence only 30% will raise or lower to offer a competitive price as the boxcars will be junked if not. f) Your company owns a 5-acre tract of land on a hill. You do not plan to use the land, but rather to keep it as greenspace for your employees. You have been approached by a cellular company who wishes to place a tower on your site. They have begun discussions with other company who has a less attractive site. This company will try to negotiate for $8,000 per year.Price of the 5 - acre tract - $8000 (or more attracti ve for the cellular company)Reason The company achieves its aim in keeping the subject green as well as will receive revenue of $ 8000 as rent without any maintenance for the tower unlike a building rented.g) You own a start up cellular company and are considering how to price your basic, standard phones if customers will sign a contract to keep your aid for a year.Price of the service will be - 10% lower than the market price Reason The product is new and needs market penetration among existing players. Besides the signing of contract by the customers for a year will reduce attrition and salvage the costQuestion 2 question the differences in how each market type prices its product to maximize profit.Products in different market types are priced differently. Find below a closer look at various market types, buyer and vendor ratios, pricing strategies, and the impact of advertising. Entry into and exit from markets, Price leadership and price differentiation.Types of Markets 4Mar ket with perfective aspect competition In a market with perfect competition, a large number of sellers and buyers