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Oceanic Cable provides pay-per-view coverage of all the University of Hawaii football games. The cost to purchase a single game is $12.95 if you live on Oahu, but is only $5 if you live on one of the other Hawaiian Islands. You can also choose to purchase the entire season of games for $75 if you live on Oahu and $25 if you live on a neighbor island. Given the pricing policy Oceanic has chosen, what goal might they have? Do you think the pricing policy is an effective way to achieve that goal? If not, what other pricing policies might Oceanic use?
For the most part, price is directly related with the demand of products. In general, the higher the price charged for a good or service, the lower the quantity that will be demanded on that product. A number of variables affect price which include but are not limited to: the price of substitute and complementary products, state of the economy, disposable personal income, advertising expenditures, quality of the product, people's tastes, and government regulations. Based on the law of demand, Oceanic's demand for coverage...
By offering live University of Hawaii football games, customers can enjoy the games from the comfort of their own home at a reasonable price. Due to the fact that outer island residents cannot attend games physically, Oceanic provides them with an opportunity to view the game live at a fraction of the cost. This service can increase customer loyalty which in turn could lead to increases in other services like internet access and telephone service. Also, by charging Oahu residents almost three times more per game, Oceanic could be encouraging fans to attend games physically at Aloha Stadium.
Elasticity tells us how the percentages of quantity change given a small (marginal) percentage change in one of the listed variables. Products that have few good substitutes generally have a lower elasticity of demand than products with many substitutes. As a…
Managerial Economics Get the financial data for a company or organization for five years. From the balance sheet and the income statement for the company or organization develop regression line formulae for each line item and predict those line item revenues and costs over the next five years. Don't do prediction for any item in the statement less than 10% of the total sales on the incomes statement or 10% of
Managerial Economics Question Set The demand function for Good X is defined as Qx = 75-2Px - 1.5Py, where Py is the price of Good Y. Calculate the price elasticity of demand using the point formula for Px = 20 and Py = 10. Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect
Managerial economics, there are variety of structures and philosophies that companies will use to maximize their profit margins. This is accomplished through taking these concepts and continually adapting them in order to achieve these objectives. To fully understand how this applies requires examining an employer. This will be achieved by providing a description of the company, describing any problems they are facing, analyzing the dimensions of the job and studying
Managerial Decision Making Walmart is the largest retail store outlet in the United States. The business operations that are done by Walmart as an establishment encompasses cafeterias, hypermarkets, retail supply stores and also warehouse clubs. Some of the risk factors that influence the company include domestic and international macro-economic factors, lack of response to consumer preferences or trends, obstacles in the expansion and extension of the international operations of the company,
Price: The customer will be able to choose from a wide variety of prices, starting with $15 and ending with $2,000. The average retail price is of $100.00 a bottle of specialty wine, with an average fixed cost per bottle of $50. The $50 difference allows me to reduce the retail price if I find this is necessary to attract customers. I could also implement various pricing strategies, such as
Managerial Economics Telecommunications has changed dramatically in recent years and continues to show signs of future change. The introduction of the smart phone has shifted technology away from communication via telephone. New applications allow users to use their phone as a walkie-talkie, way to access social-networks such as Facebook, a way to access email, skype and texting within applications. This changes the way customers approach buying a plan. There is less