Many other examples are present in the case. Chapter 5: Ask the students to identify specific cost-complementarities and economies of scope within TWC (for example, the cost of providing broadband service to a household is lower if that customer subscribes to its cable service – this is an example of economies of scope). Are premium and basic cable normal or inferior goods? Is broadband a substitute or complement for cable television? A number of memos (discussed below) permit hands-on quantitative analysis of additional issues. Economic Focus: Elasticity, Total Revenue, Marginal Cost, Profit Maximization Chapter 3: The case facilitates links to elasticities of demand and quantitative demand analysis. It will be used to generally compare the revenue-maximizing price with the profit- maximizing price in the presence of positive marginal cost. This memo is similar, to Memo 1 in which students are required to use the data to estimate a demand function and determine the revenue maximizing price. Summary of Memo 4 Students are asked to use data to calculate the profit maximizing price for a service. Fees are based on the number of subscribers. License fees represent the fees that we must pay to Epix for the rights to re-transmit their channels. By the due date indicated ( which is Sunday), re-submit the final version of your work ( if over 25% similarity score by Sunday ) Revise your work as needed based on the feedback. Review your Submission Details and access your Turnitin report. Your work will automatically be checked by Turnitin. Consider checking your brief for spelling and grammar using Grammarly. Include 1-2 resources in addition to your textbook. Also, note whether this will impact the company’s revenue. Conclude with a recommendation of the profit- maximizing price, and how much of the profits will increase if the company adjusts prices to the recommended level. Compare and contrast whether the company will increase profits with the new service. Use the file named “Epix”: (the icon below can be found in the course) ECON 723 MEMO 4 EPIX. Calculate the profit-maximizing price for the service. Opening: Provide an overview of the memo itself to inform the reader what the outline will encompass.Write a 1- to 2-page business brief that includes: Week 4 Business Brief TWC Memo 4 (Continued) 4. Thus, there are various factors to consider many centered around the cost of However, the local pizza also might consider the possibility of a local grocery stores attempting to compete with them with low-cost frozen pizza made in Canada shipped locally to the U.S. Thus, car manufactures are more likely to consider global factors of production such as bringing component parts from Mexico (with lower wage rates) into the U.S. Thus, the time horizon is often dependent on the type of product (for example pizza is more perishable) while cars are a classified in economics as a durable good (can be assembled in parts, inventoried, and ship great distances if required). However, for a car manufacturer it might take two to three years to acquire a much larger operation, for example a new assembly facility and possibly adding capital such as new automated manufacturing machines. It might take 2 or 3 months to change fixed factors of production such as adding to their building size and adding more pizza ovens. What Are Other Factors for a Manager to Consider? For example, a local pizza business manager who wants to expand their business.
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