BUSSPP 0020 Lecture Notes - Lecture 5: Robinson–Patman Act, Sherman Antitrust Act, Reverse Auction
Document Summary
Chapter 5 price: price vs pricing, price: the amount of money is a seller willing to accept in exchange for a product b. of specific attributes, at a given time and under given circumstances. New q must equal more than 1/. 9 = 11% for revenue to increase: three results c. i. Revenue 2 > revenue 1 enhancing c. iii. Implicit collusion: appears to be an agreement but isn"t really an agreement among two parties that may be illegal or legal b. i. Profit maximization: the economic ideal; hard to determine what price will actually maximize profit a. i. 2. Target return: a more typical profit objective; an absolute amount of profit a. i. 3. Loss leaders: product priced below its cost of manufacturing, although products are not priced to loose money in the long run but in the short run they can a. ii. Price to gain or maintain market share a. iii.
