Question

In: Economics

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop...

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Qd = 300 – 0.2P and that it would cost you $1,000 per unit to install and maintain software at this client’s site. The CEO of your company recently asked you to construct a report that compares (1) the profit that results from charging this client a single (profit-maximizing) per-unit price with (2) the profit that results from charging $1,450 for the first 10 units and $1,225 for each additional unit of software purchased.

What type of pricing strategy is (1)? Third-degree pricing strategy Per-unit pricing strategy First-degree pricing strategy Second-degree pricing strategy

What type of pricing strategy is (2)? First-degree pricing strategy Third-degree pricing strategy Per-unit pricing strategy Second-degree pricing strategy

Between pricing strategy (1) and (2), which is more profitable? Strategy (2) Strategy (1)

True or False: You could earn more profits using a two-part pricing strategy.

Solutions

Expert Solution


Related Solutions

Suppose you are a pricing analyst for DataXX Corporation, a firm that recently developed a new...
Suppose you are a pricing analyst for DataXX Corporation, a firm that recently developed a new software program for data analysis. You have two types of clients who use your product. Type A’s inverse demand for your software is P = 120 – 10Q, where Q represents users and P is in dollars per user. Type B’s inverse demand is P = 60 – 2Q. Assume that your firm faces a constant marginal cost of $10 per user to install...
4.Suppose you are a pricing analyst for Data Corporation, a firm that recently developed a new...
4.Suppose you are a pricing analyst for Data Corporation, a firm that recently developed a new software program for data analysis. You have two types of clients who use your product. Type A Inverse demand for your software is P = 120 –10Q,where Q represents users and P is in dollars per user.Type B’s inverse demand is P = 60 –2Q. Assume that your firm faces a constant marginal cost of$10 per user to install and setup this software for...
(a). You are the System Analyst for VIP Transport Company Ltd. The company wants to develop...
(a). You are the System Analyst for VIP Transport Company Ltd. The company wants to develop a computer-based accounting information system for use and you have been appointed as the project manager for this project. i) Perform technical feasibility and operational feasibility for this project, using practical examples to illustrate your answer. Justify your answer(s). [You may use tables in your feasibility analysis]
You have recently started working as a product analyst at a company that manufactures and sells...
You have recently started working as a product analyst at a company that manufactures and sells a variety of soft drink products. One of your first jobs is to categorize each of the firm's new products for the upcoming year into the appropriate new product category for a presentation you are putting together for your manager. A new product is one that is new to a company in any way. If a product is functionally different from existing products in...
You were recently hired by a firm as a project analyst.
You were recently hired by a firm as a project analyst. The owner of the firm is unfamiliar with financial analysis and wants to know only what the expected dollar return is per dollar spent on a given project. Which financial method of analysis will provide the information that the owner requests? a. Internal rate of return b. Modified internal rate of return c. Net present value d. Profitability index e. Payback
You recently started working as a data analyst for the retail industry. Your company would like...
You recently started working as a data analyst for the retail industry. Your company would like to invest more money into a machine learning project. You need to write at least 3-5 page executive summary that describes the benefit of using machine learning. It should include following: Identify at least two business use cases for a retail industry that will benefit from Machine learning. Describe the importance of input data quality for machine learning. Describe a type of Python libraries...
In 200 words or more, for the Toyota Motor Corporation develop Dynamic/Static Pricing Strategies?
In 200 words or more, for the Toyota Motor Corporation develop Dynamic/Static Pricing Strategies?
Recently you borrowed money for a new car. The loan amount is $15,000 to be paid...
Recently you borrowed money for a new car. The loan amount is $15,000 to be paid back in equal annual payments which begin today, and will continue to be payable at the beginning of each year for a total of five years. Interest on the loan is 8%. What is the amount of the loan payment? a $4,193.34 b $4528.81 c $3,478.31 d $4,891.12
You are recently appointed as a centralized “Cost Control Analyst” for one of the bank in...
You are recently appointed as a centralized “Cost Control Analyst” for one of the bank in Toronto. Head of Banking operations in Toronto Mr. Horton has asked you to analyse the cost of basic stationary as Stationary in different regions of the bank seems to be one of the highest cost. He wants you to come up with your statistical analysis with two pager report. Use Central tendencies, Standard deviation and Regression analysis techniques along with graphical representation. (30 Marks...
You are an analyst that has been requested to assess FCFF and FCFE in the recently...
You are an analyst that has been requested to assess FCFF and FCFE in the recently completed financial year ended 30 June 2016 in a company under review. You have been provided with the information below: $ thousands EBITDA 64,208 Depreciation 15,144 Net Interest Expense 5,550 Capital Expenditure net of proceeds on disposal 16,240 Increase in Net Operating Working Capital 1,190 New issues of unsecured notes (bonds) 10,440 Unsecured notes redeemed 7,642 Issues of new Ordinary Shares 13,910 Ordinary Share...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT