Shell and Mobile, due to a turbulence in gasoline prices, must come up with new pricing
strategies to stay competitive. For simplicity, let’s assume that both firms can choose between
setting the price at $3/gallon OR $2/gallon. They set their prices at the same time. Because
most Shell and Mobile stations, for some reason, are always next to one another, whoever sets
the lower price will get ALL the customers. If they set the same price the split the customers in
half. Suppose the market demand for a small town, Economiville is given by
P = 6 – 2Q
Where Q is measured by millions of gallons, and consumers in Economiville only have access to
Shell or Mobile. Shell and Mobile have no costs of producing the gas (assume they have a prior
contract with OPEC (organization of petroleum exporting countries) and have already paid for
the gas in stock). This allows us to consider them maximizing their revenue.
Answers: 3
Business, 22.06.2019 05:00
The new york stock exchange is an example of what type of stock market?
Answers: 1
Business, 22.06.2019 13:50
Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.
Answers: 2
Business, 22.06.2019 23:30
An outside supplier has offered to sell talbot similar wheels for $1.25 per wheel. if the wheels are purchased from the outside supplier, $15,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $45,000 per year. direct labor is a variable cost. if talbot chooses to buy the wheel from the outside supplier, then annual net operating income would:
Answers: 1
Business, 23.06.2019 01:10
Snuggables sells microwaveable heat packs online. their sales software collects customer/sales information and shares it with the customer service and sales departments. none of the customer complaints or suggestions reach the product development person, however. which step of the three-step processes for success is snuggables failing to use fully?
Answers: 2
Shell and Mobile, due to a turbulence in gasoline prices, must come up with new pricing
strategies...
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