Jason is an artist who wants to turn his art into a small business. he had the great idea to go to other hobby-based businesses in his community and give painting lessons to their clients. first, he went to a local stable and taught its boarders how to paint portraits of their horses. then, he went to a local dance studio and taught its patrons how to paint their dream dance costumes. based on the buzz created by his new business, several other local businesses want to hire jason. what is one area where he may struggle in managing his new business? a. he may get stuck in a market niche. b. he may lack the flexibility to adapt to changing market demands. c. he may have trouble managing all the money he will make from the start. d. he may lack the skills and experience to make good management decisions. e. he may focus too much on management and not enough on his great product ideas.

Imagine you own an established startup with growing profits. you are looking for funding to greatly expand company operations. what method of financing would be best for you?

conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?