Macro & Micro economics
“New Retail Strategy”
When managers determine their prices, they may not believe they have any options. While it’s true that firms in a competitive market have little room to maneuver, they may not recognize that pricing technology may allow them to find the profit-maximizing point, even if it is just a cent higher or lower. In the following discussion, consider what options these companies have when deciding whether to change their prices.
For this discussion, read the case “New Retail Strategy” starting on page 371.
Please respond to all of the following questions
Why do you think the stores wouldn’t raise prices to increase revenue in this case?
Why would the stores wage price wars in a declining economy?
Do you think cost cutting is a good strategy during a recession? Why or why not?
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Category: Essay Writing