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Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
Edition 6ISBN: 978-0073523149Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
Edition 6ISBN: 978-0073523149 Exercise 19
ANALYZING MANAGERIAL DECISIONS: Profit Potential for a Microbrewery
You operate a small microbrewery in Germany. The demand curve for cases of your beer is P = 50 -.002 Q. Your marginal cost for producing beer is 10 euros per case. Currently you are charging all customers the same price for a case of your beer.
Describe how you might capture additional profits using a more sophisticated pricing policy that does not involve capturing more of the consumer surplus. Explain.
You operate a small microbrewery in Germany. The demand curve for cases of your beer is P = 50 -.002 Q. Your marginal cost for producing beer is 10 euros per case. Currently you are charging all customers the same price for a case of your beer.
Describe how you might capture additional profits using a more sophisticated pricing policy that does not involve capturing more of the consumer surplus. Explain.
Explanation
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Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman
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