SUBJECT: Managerial Economics and Business Strategy

INSTRUCTIONS: Read the case about Time Warner Cable using the link I provided below. Put yourself in the shoes of decision makers at the time of their decisionsJuly 2016 in this caserather than at the time you read the case. Time Warner Cable is a timeless case that was written especially for Managerial Economics and Business Strategy. Regardless of whether you've covered a single chapter or every chapter in the text, the case provides an opportunity to apply tools from managerial economics to a real-world business situation. The case includes a plethora of issues and may be used in a variety of ways to hone your decision-making skills.

The case includes a variety of memos that permit you to apply concepts on a chapter-by-chapter basis. Read the following memo given below and provide the information requested. As you answer, APPLY concepts from Managerial Economics and Business Strategy.

We hope you enjoy the case. Remember that an important component of any case exercise is to use the information provided along with your knowledge of managerial economics and business strategy to identify key issues and to guide your recommendations and decisions. Consider this a practice run for when you leave the classroom and enter the business world.

PDF file of the Case: Time Warner Cable: https://drive.google.com/file/d/10pqMPIdX7isEreAblpCQh-SjC2SjAhaF/view?usp=sharing

REMINDER: Please, NO PLAGIAR. And kindly, do not give too short answers. AT LEAST 1-page will do, because this is a case study. Thank you so much.

MEMO 11

To: Vice President, Marketing

From: Chief Operating Officer

Re: Cable Channel Pricing

A number of groups have put pressure on the FCC to mandate that cable companies offer their channels la carte rather than in bundles. We are opposed to this measure and will continue to strive to provide channels in bundled tiers. However, we want to be prepared in case we need to offer single-channel pricing.

Using existing market research, we were able to calculate an estimated own-price elasticity of demand for a number of our most popular cable channels. Use this information, along with the marginal cost for each channel, to calculate the profit- maximizing price for each of these channels.