Elasticity

cream market 30 Positioning 31 Product 32 Our New Product 32 The Design Framework 32 Packaging 34 Branding 35 Pricing 36 Establishing pricing goals 36 Price positioning 38 Estimate demand cost and profits 39 Demand 39 Price Elasticity of Demand 40 Cost 41 Chose a price strategy to help determine a base price 43 Fine-tune the base with pricing tactics 44 Right price 44 Distribution 45 Promotion 48 Advertising 48 TV commercials 48 Radio 49 Magazines and Billboard

Dans le cas des rendements d’échelle constants (Si α+β = 1) : Y=AKαL1-α=>YL=AKαL1-αL= AKαL-α=A KLα y=Akα o<α<1 F'L=f'k=αAkα-1=up F'L=fk-kf'k=Akα-αAkα=1-αAkα=wp Y=AKαL1-α p=Buαw1-α * La fonction CES Cela veut dire Constant Elasticity of Substitution. Elle est plus générale (et donc plus complexe) que la fonction Cobb-Douglas. 2) La définition du progrès technique On a essayé de donner des classifications du progrès technique pour essayer de comprendre un peu mieux le concept :

necessary to the decision making are therefore indispensable. Thus, variables as those that represent below must be listed : Information on the competition Information on the environment Information on the satisfaction of the partners Elasticity of demand to the different elements of the mix … These control panels must be achieved by every decision-maker in his particular field. They must permit to select the information necessary to the decision making and to count the effects of the

restrain trade. Moreover it seems that environmental policy are facing the wish of developing countries to reach prosperity via a fast economic growth. Indeed many economists suggest that “environmental cleanliness” is a commodity with high income elasticity of demand, in other words as nations get richer, they prefer less pollution. According to HECKSCHER-OHLIN, this is particularly true for countries benefiting from large geographical space and a relatively large factor endowments (air, land, water)

away from UPS and offer a higher quality service that should increase their revenue. As there is plenty room to raise prices, the higher service could justify a higher price but keep them in the low-cost position. Of course, being not aware of the elasticity of the price of shipping packages, we suppose that as long as they keep offering the lowest price the volume shouldn’t deteriorate. Furthermore, knowing that ground shipment is where they get the higher margins, they should jump on the opportunity

that in a rich country individuals invest more time in education than those in a poor country. This means that the average stock of human capital depends positively on the stock of physical capital per unit of effective-labor and on the constant elasticity coefficient of e with respect to k, that is, b. By combining Expressions (4), (8) and (12) we can obtain a more specific formulation for yt in which output depends only on physical capital. In this way, we can obtain the dynamics of yt from the dynamics

des exposants des variables ≠ 1. On parlera alors de fonction de type Cobb-Douglas. - On a construit également des fonctions à rendements constants mais dont l’élasticité de substitution entre facteurs est ≠ 1. Ce sont les fonctions CES (Contant Elasticity of substitution) qui sont une généralisation de la fonction Cobb-Douglas. e) Complément sur productivité moyenne et productivité marginale Dans le cas d’une fonction de type Cobb-Douglas, la productivité marginale du capital est égale à la dérivée

Advertising • • Increase advertising expenses in an attempt to build demand or steal market share from rivals. When is advertising not likely to provoke a “war”? • • When it serves to increase differentiation -> soften competition • Cross-elasticity of demand may be reduced When following poses a threat to competitor’s survival (competitor can’t afford to respond) Cooperative Strategies • Structure the game such that firms have mutually shared incentives • • • • Establish long-term

market where price is associated with quality and uniquness. Paul Smith should in years to come to increase his value-added in order to increase his products prices to become more expensive. Indeed, according to the Veblen effect the price/demand elasticity of luxury product is positive (Montoussé & Waquet 2008). However, this theory is not very precise because obviously there is a price limit where the demand will start to decrease. Paul Smith will increase his credibility as luxury brand and

économétrique pour l’estimation de l’élasticité de l’investissement par rapport au coût d’usage du capital, en utilisant les données d’entreprises sénégalaises. 10 Machinery and Equipment “Recent studies appear to have reached a consensus that the elasticity of investment with respect to the user cost of capital is between -0.5 and -1.0”. Hasset, K. and Hubbard, G. (1997) “Tax Policy and Investment”, in Auerbach, A., ed.,Fiscal Policy: Lessons from Economic Research: MIT Press. 11 10 III CAS PRATIQUE