MGMD01H3 Lecture : Absor case assignment.docx
Document Summary
Abcor industries is a subsidiary of conglomerate inc. They sell plate-making equipment and engraving plate material to different countries. The product abcor100is less expensive compare to amcor2000 at initial machine price, but the subsequent price per plate changed and abcor1000 is more expensive than abcor2000. Due the buyer will benefit from high plate- purchasing volume. Due to low plate-purchasing volume and high elasticity, the buyer and seller will only be marginally better off. Due to low plate-purchasing volume, the seller has to keep the price below in order to stay competitive. In conclusion, the case 1 is the best option for both buyer and seller because they are both better off under this specific parameters. Their profit is maximized compare to case 2 and 3. Can clearly display benefit for both parties in economic terms. It is easier for decision maker to choose the best price for the company.
