Question
(jPad #2) [6 pts] The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one
(jPad #2) [6 pts] The Kiwi company (supplier) has introduced a new device called jPad. jPad is sold through Good Buy (retailer). Kiwi produces one jPad at $200 and sells it to Good Buy at $400. Good Buy has estimated that demand for the jPad depends on the retail price p according to the demand function: D(p) = 2000 - 2p.
With calculus/Excel used, optimal retailer's prices were calculated.
(Independent pricing) The optimal retailer's price is $700.
(Coordinated pricing) The optimal retailer's price is $600.
(A) (Independent pricing)
(a) The corresponding demand is ____.
(b) The retailer's profit is $ ____.
(c) The supplier's profit is $ ____.
(d) The supply chain profit is $ ____.
(B) (Coordinated pricing)
(a) The corresponding demand is ____.
(b) The retailer's profit is $ ____.
(c) The supplier's profit is $ ____.
(d) The supply chain profit is $ ____.
(e) The retailer's loss due to coordination is $ ____.
(C) (Two-part tariff)
(a) The optimal retailer's price is $ ____.
(b) The corresponding demand is ____.
(c) The supplier charges an upfront fee of $ ____.
(d) The supplier sets a transfer price of $ ___.
(e) The retailer's profit is $ ____.
(f) The supplier's profit is $ ____.
(g) The supply chain profit is $ ____.
(D) (Volume-based discount)
(a) The optimal retailer's price is $ ____.
(b) The corresponding demand is ____.
(c) The supplier charges a transfer price of $ ___ for volume below D(p*) units per year.
(d) The supplier charges a transfer price of $ ___ for D(p*) units or more.
(e) The retailer's profit is $ ____.
(f) The supplier's profit is $ ____.
(g) The supply chain profit is $ ____.
-- answer in order as below. .
(A) (Independent pricing)
(a) The corresponding demand is 100
(b) The retailer's profit is $ 200000
(c) The supplier's profit is $ 300000
(d) The supply chain profit is $ 400000
and so on.
--- Only correct numbers add points. Be careful while typing your answers.
--- Do not append any analysis, discussion, or Excel output.
--- Optimal retailer's prices are given. You do not have to find them with calculus or Excel.
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