Individuality and interactivity are important building blocks for buyer-seller relationships. for these relationships to develop, companies must treat customers as individuals and empower them to (1) influence the timing and extent of the buyer-seller interaction and (2) demand product quality and timely service at lower prices than brick-and-mortar stores. shop confidently without fear of identity theft. speed up the click-through process with advanced technology. have a say in the kind of products and services they buy, the information they receive, and even the prices they pay. comparison shop with the prices of competitors alongside those of the firm.

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.