Home.W; 10-6 Salons and Teeth Whitening

Chapter 10
Salon owners have recently started offering teeth whitening services to clients in addition to their more standard services. In a number of states,

regulators have ordered the salon owners to stop, claiming that this service constitutes the practice of illegal dentistry. What group would you

expect to be behind the state’s efforts to ban salons from providing teeth whitening services? Why?

Chapter11
11-3 Evaluating Appreciation
Explain how both Japanese consumers and producers would view an appreciation of the Japanese yen versus the U.S. dollar.

Chapter12
12-3 App Pricing for Droids
Every week, more and more apps (applications) are available for Droid-based smart phones. How does this affect the optimal price for Droid-based

smart phones?

Chapter14
14-4 Microwave Ovens
A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-

defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little

additional cost to incorporating an auto-defrost feature. Since men and women cannot be charged different prices for the same product, the

manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $70 and one with

auto-defrost at $80 while women value a simple microwave at $80 and one with auto-defrost at $150.
If there is an equal number of men and women, what pricing strategy will yield the greatest revenue? What if women compromise the bulk of microwave

shoppers?

Chapter15
15-4 Salary Negotiation
The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the

employer moving first, indicate the most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee,

is there anything you could do to realize a higher payoff?
Employer
Low Salary Offer
High Salary Offer
Employee Walks
Employer gets 0 Employee gets 0
Employee Accepts
Employer gets 100 Employee gets 75
Employee Walks
Employer gets 0 Employee gets 0
Employee Accepts
Employee gets 100 Employer gets 75