Author Question: Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to ... (Read 94 times)

Redwolflake15

  • Hero Member
  • *****
  • Posts: 569
Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand.
 
  Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.5. If the full retail (undiscounted) price of the detergent is 10 per box, what is the optimal discount to provide for coupon users? A) 25 off
  B) 50 off
  C) 75 off
  D) The optimal strategy is to charge the same price to both groups

Question 2

At the optimum combination of two inputs,
 
  A) the slopes of the isoquant and isocost curves are equal.
  B) costs are minimized for the production of a given output.
  C) the marginal rate of technical substitution equals the ratio of input prices.
  D) all of the above
  E) A and C only



Zebsrer

  • Sr. Member
  • ****
  • Posts: 284
Answer to Question 1

B

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Zebsrer

  • Sr. Member
  • ****
  • Posts: 284

 

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

For a complete list of videos, visit our video library