[SOLUTION] Consumer Electronics Firm

Read chapter 7of McKenzie and Lee book found at this link: https://books.google.com/books?id=tjxyDAAAQBAJ&pg=PA1&source=gbs_toc_r&cad=4#v=onepage&q&f=false Then research and write a response to the following: Suppose that your team has been hired by a high-tech, consumer electronics firm to provide an economic analysis of how to price this new product in such a way that maximizes the company’s profits. In today’s technologically driven world, there are some people who enjoy becoming the first adopters of a new product. Most people, however, seem to hold back to see the development of the product before they jump in. Are there any strategies that the firm can take so that they can fully use the knowledge of the relative elasticities? As a result, you will need to investigate what market separation is. Is there any way that we can use market separation on the two markets and increase revenues? In these sorts of markets, we might also see lagged demand and network effects. What sort of pricing strategies do firms have to follow when these conditions are present?

 

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