The space between the buyer’s reservation price and the seller’s reservation price is called the Total surplus.
What is reservation price for buyer?
A reserve price or reservation price is a word frequently used in auctions and refers to the lowest amount a seller will accept as a successful bid. An alternate, less well-known definition is the highest price a customer will pay for a good or service.
What is producers reservation price?
The minimal price that buyers and sellers are ready to accept in order to buy or sell a good is known as the reservation price. It is the highest price a potential buyer or consumer is willing to pay for a good; for a seller or producer, it is the lowest price they are willing to accept.
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Answer:
The price elasticity of supply is 1.22
Explanation:
Please refer to the attached file
There are four types of market structures namely; perfect competition, monopoly, monopolistic competition and oligopoly. Perfect competition is where large number of small firms compete with each other with a homogeneous product. In a monopoly market there is only one producer of a given product who determines the price of the product. In monopolistic competition the market combines the aspect of monopoly and perfect competition. In this case, In Oligopoly there are a few suppliers or sellers of a particular product.
Answer:
2. False
Explanation:
Relationship management is considered an important part of CRM (customer relationship management) and it emphasizes on building and increasing customer loyalty and long term commitment.
If this company was to replace their traditional marketing approach with relationship marketing, they would devote more time to build a solid relationship with existing customers and less time searching for new customers.
