Question 1. What do the four P's represent in marketing method? (2 pts)

Question 2. Please match which methods are used to deal with double marginalization problems or with free riding problems in the manufacturer and retailer coordination. (2pt)

Price floor

Two-part pricing

Contractually agree on who do advertising and who bear the cost

Quantity quotas

Questions 3. Calculate the ROI price (show your work to received partial credits if the result is incorrect) (3pt)

Suppose that a food processor is developing a new whole grain pasta with a total investment costs (e.g. R&D and new machinery) is $100,000. Suppose that xed cost per year is $30,000, and marginal cost is $4.00/box. The budgeted sales is 50,000 units per year. What is the ROI price at 20% of ROI?

Question 4: Same situation as in Question 3, the new product can be sold over 5 years. What is the cost-plus price if your chosen mark-up is 20%? (3pt)

Question 5: Same situation as in Question 3, the annual demand curve is Q = 30000 - 2500P. What is the profit maximizing price this monopolistic producer can charge while the product is in patent protection? (4pt)