# BUS W4 p2

Nursingwritersden.com presents itself as a viable option for nursing students seeking academic assistance. With a team of specialized writers, customized content, timely delivery, confidentiality, and dedicated customer support, the platform offers numerous benefits to its users. Students view Nursingwritersden.com services as a supportive tool to enhance their academic knowledge rather than a replacement for their own learning efforts. You can make your order today and you will never be disappointed.

Problem 2:

Greener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Last year, GGCâ€™s price for the typical lawn system was \$1,900 compared with BLGâ€™s price of \$2,100. GGC installed 9,960 systems, or about 60% of total sales and BLG installed the rest. (No doubt many additional systems were installed by do-it-yourself homeowners because the parts are readily available at hardware stores.)

GGC has substantial excess capacityâ€“it could easily install 25,000 systems annually, as it has all the necessary equipment and can easily hire and train installers. Accordingly, GGC is considering expansion into the eastern suburbs, where the homeowners are less wealthy. In past years, both GGC and BLG have installed several hundred systems in the eastern suburbs but generally their sales efforts are met with the response that the systems are too expensive. GGC has hired you to recommend a pricing strategy for both the western and eastern suburb markets for this coming season. You have estimated two distinct demand functions, as follows:

Qw =2100 â€“ 6.25Pgw + 3Pbw + 2100Ag – 1500Ab + 0.2Yw

for the western market and

Qe = 36620 – 25Pge + 7Pbe + 1180Ag – 950Ab + 0.085Ye

for the eastern market, where Q refers to the number of units sold; P refers to price level; A refers to advertising budgets of the firms (in millions); Y refers to average disposable income levels of the potential customers; the subscripts w and e refer to the western and eastern markets, respectively; and the subscripts g and b refer to GGC and BLG, respectively. GGC expects to spend \$1.5 million (use Ag = 1.5) on advertising this coming year and expects BLG to spend \$1.2 million (use Ab = 1.2) on advertising. The average household disposable income is \$60,000 in the western suburbs and \$30,000 in the eastern suburbs. GGC does not expect BLG to change its price from last year because it has already distributed its glossy brochures (with the \$2,100 price stated) in both suburbs, and its TV commercial has already been produced. GGCâ€™s cost structure has been estimated as TVC = 750Q + 0.005Q2, where Q represents single lawn watering systems.

Show all of your calculations and processes. Describe your answer for each item below in complete sentences, whenever it is necessary.

1. Derive the demand curves for GGCâ€™s product in each market.
2. Derive GGCâ€™s marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGCâ€™s demand, MR, and MC curves for each market.
3. Derive algebraically the quantities that should be produced and sold, and the prices that should be charged, in each market.
4. Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
5. Add a short note to GGC management outlining any reservations and qualifications you may have concerning your price recommendations.

In the pursuit of academic success, the notion of quality work stands as an indispensable cornerstone. Whether in the realm of education, research, or professional endeavors, the adherence to high standards ensures that outcomes are not only exemplary but also a testament to one’s commitment to excellence. Nursingwritersden.com assures high quality work and timely delivery for all assignments. In the rare event that a student is dissatisfied with the final paper, Nursingwritersden.com offers revision services. The platform is committed to ensuring that each nursing term paper meets the student’s expectations and academic standards. As such, they have quality assurance protocols in place to maintain the highest level of quality in their work.