You are working for a company that makes high-end pet-food bowls. Suppose that your company does have pricing power over its product. I.e., you are not operating in a perfectly competitive market.

For each of the changes listed below, indicate if the company should keep their price the same, raise their price, lower their price, or if you can't determine what they should do.

Describe how your company should change the price it charges for its product in response to each of the situations below, and explain why.

(a) The rent on your production factory increases.

(b) You discover that one of your managers made a mistake! You previously thought that your marginal cost of production was $20 per bowl, but the manager forgot to include some opportunity costs in that figure, and so the true marginal cost is more than $20.

(c) A rival pet-food bowl maker enters your market.

(d) Your CEO demands a 10% salary increase!