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inna [77]
1 year ago
5

Glen found three brands of earbuds that have the specifications he wants. The three pairs of earbuds looked a bit different from

each other, but Glen knew they would perform similarly. Still, each company offered its earbuds at a different price. What economic concept does this situation represent? A. Collusion B. Product differentiation C. Price-fixing D. Natural monopoly
Business
2 answers:
34kurt1 year ago
3 0

This is an example of product differentiation. There are many brands and companies, and each of them fight for the best price while making the best profit. The products are similar, but the only difference are the pricing of the product.

valkas [14]1 year ago
3 0

Answer:

Product differentiation is a tactic available to companies competing in the monopolistic competition system. It is an economic model where few companies offer the same product, but with differentiations. Thus, companies in this competitive model have some power to influence prices. In addition to the headphone market, a good example of perfect competition is the toothpaste market, where companies launch the same product but with differentiations. For example, toothpaste with whitening.

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Answer:

a) 2,093

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Explanation:

a) economic order quantity

Q_{opt} = \sqrt{\frac{2DS}{H}}

<u>Where:</u>

D = annual demand = 21,900

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b) it takes four days to arrive:

if it sale 420 units per week then:

420 x 4/7 = 240 units are demand during delivery

c) order cycle:

EOQ / Annual Demand

2,093 / 21,900 = 0,09557 x 365 = 34.8333 days

It will order every 34 days (if it orders after 35 days will face shortage)

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In the scenario described above, an effective communication can be achieved by ensuring that your viewpoints are clearly understood by the audience.

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