Acompany manufactures three products using the same production process. the costs incurred up to the split-off point are $196,900. these costs are allocated to the products on the basis of their sales value at the split-off point. the number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. product number of units produced selling price at split-off selling price after processing additional processing costs d 4,750 $10.17 $14.83 $16,135 e 5,560 11.48 15.73 15,800 f 1,980 19.70 22.23 7,829 (b1) determine the incremental profit (loss) of each product(s).

If temper company, a manufacturer of mattresses, was considering moving its production facilities to china but decided against it because the additional costs of shipping the mattresses back to the u. s. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example ofanswers: learning-curve economies. diseconomies of scale. economies of scale. competitive advantages.

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?

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.