problem set 43

For this week’s problem you need to draw specifically from the Week 9 reading (chapter 12) and prior learning from this course at your discretion. All calculations must be shown and all economic reasoning clearly explained. All work must be your own.

Case A

You are to determine the realistic, profit maximizing price(s) you will charge for a product you are making that will be introduced to a competitive market with many participating firms. You can use an existing market or create one of your own.

Case B

You are to determine the realistic, profit maximizing price(s) you will charge for a new product you are making that will be introduced to a new market you are establishing, with no competitors – yet. Please use a product that does not exist yet. I encourage you to be creative.