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Author Question: Firm X owns both tea and coffee plantations. It sells directly to the public. If the firm wants to ... (Read 139 times)

LaDunn

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on: Jul 1, 2018
Firm X owns both tea and coffee plantations. It sells directly to the public. If the firm wants to increase the sales for the coffee, assuming that tea and coffee are substitutes, which of these strategies can it employ?
 a. Increase the price for the tea
 b. Offer free expedited shipping on the coffee
  c. Advertise the tea more heavily
 d. Both A&B

Question 2

Half of all your potential customers would pay 16 for your product but the other half would only pay 10 . You cannot tell them apart. Your marginal costs are 4 . If you set the price at 10, the expected profit is:
 a. 3
  b. 4
  c. 5
  d. 6


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sabina576

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

d


LaDunn

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

Dominic

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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