A competitor sells heavy machinery priced at $14,000. Your firm has been working to enter the heavy machinery market and has developed a new product with a marginal cost of $8,500. Your firm new machine is superior to its competitors in some ways and inferior in other ways. Its speed is limited, which reduces the value to customers by $1,000 per engine. However, it requires less maintenance, delivering savings of $3,500 per engine. Required:
a. What is the reference price for the New Product?
b. What is the differential value of the New Product in comparison to Old Product?
c. What is the total value of New Product?
d. What range would you suggest to marketing for pricing New Product?

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

wheres the chart? so i can answer.