Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Last year, GGCâs price for the typical lawn system was $1,900 compared with BLGâs price of $2,100. GGC installed 9,960 systems, or about 60% of total sales and BLG installed the rest. (No doubt many additional systems were installed by do-it-yourself homeowners because the parts are readily available at hardware stores.) GGC has substantial excess capacityâit could easily install 25,000 systems annually, as it has all the necessary equipment and can easily hire and train installers. Accordingly, GGC is considering expansion into the eastern suburbs, where the homeowners are less wealthy. In past years, both GGC and BLG have installed several hundred systems in the eastern suburbs but generally their sales efforts are met with the response that the systems are too expensive. GGC has hired you to recommend a pricing strategy for both the western and eastern suburb markets for this coming season. You have estimated two distinct demand functions, as follows: Qw =2100 â 6.25Pgw + 3Pbw + 2100Ag – 1500Ab + 0.2Yw for the western market and Qe = 36620 – 25Pge + 7Pbe + 1180Ag – 950Ab + 0.085Ye for the eastern market, where Q refers to the number of units sold; P refers to price level; A refers to advertising budgets of the firms (in millions); Y refers to average disposable income levels of the potential customers; the subscripts w and e refer to the western and eastern markets, respectively; and the subscripts g and b refer to GGC and BLG, respectively. GGC expects to spend $1.5 million (use Ag = 1.5) on advertising this coming year and expects BLG to spend $1.2 million (use Ab = 1.2) on advertising. The average household disposable income is $60,000 in the western suburbs and $30,000 in the eastern suburbs. GGC does not expect BLG to change its price from last year because it has already distributed its glossy brochures (with the $2,100 price stated) in both suburbs, and its TV commercial has already been produced. GGCâs cost structure has been estimated as TVC = 750Q + 0.005Q2, where Q represents single lawn watering systems. Show all of your calculations and processes. Describe your answer for each item below in complete sentences, whenever it is necessary.1.Derive the demand curves for GGCâs product in each market. 2.Derive GGCâs marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGCâs demand, MR, and MC curves for each market. 3.Derive algebraically the quantities that should be produced and sold, and the prices that should be charged, in each market. 4.Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market. 5.Add a short note to GGC management outlining any reservations and qualifications you may have concerning your price recommendations.
1 a.Derive the demand curves for GGC’s product in each market.Qw =2100- 6.25Pgw +3 Pbw +2100Ag – 1500 Ab + 0.2 YwWestern”Qw=2100-6.25Pgw +3Pbw *2100Ag + 2100 *1.5 -1500*1.2 + 0.2*5500…
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more