Managerial Economics chapter 7

Managerial Economics chapter 7 - Managerial Economics...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Managerial Economics Chapter 7 1) Discuss the application on page 213 These applications assume that how is important appropriate pricing strategy toward a company’s profit. Cost is important in setting price however it is not the only factor. Company should consider other factor such as customer demand and competitors. 2) Discuss the Microsoft example on page 214 Microsoft as a “monopoly” they frequently refer to Microsoft’s “unique market position” or “huge installed base”. Microsoft has found several ways to raise prices. Microsoft stopped requiring companies to buy individual copies of software for each employee. It now offers a multiyear site license where one copy of the software can be downloaded to individual copies. It is an example of pricing policy. Microsoft has changed it pricing policy from one thing the other. That brought it 16% more profit. 3) Distinguish among first, second and third degree price discrimination. Price discrimination occurs whenever a firm charges differential prices across
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/11/2011 for the course FIN 3604 taught by Professor Patterson during the Spring '10 term at University of South Florida.

Page1 / 2

Managerial Economics chapter 7 - Managerial Economics...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online