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Suppose that a monopolist sells a product to men and women. if the firm sets a single price, the monopolist would produce 100,000 units and sell them at a price of $5.00 per unit. suppose that at that price, the price elasticity of demand for men is -3.50, and the price elasticity of demand for women is -0.80. the monopolist is considering whether he should set discriminatory prices and asks for your advice.
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Business, 22.06.2019 19:20, kristen17diaz
Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.
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Suppose that a monopolist sells a product to men and women. if the firm sets a single price, the mon...
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