Montecalvo Logistic Solutions Corporation Has Developed a New Forklift-Model PI-28-That

question 69

Multiple Choice

Montecalvo Logistic Solutions Corporation has developed a new forklift-model PI-28-that has been designed to outperform a competitor's best-selling forklift. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $9.70 per hour, and sells for $139,000. In contrast, model PI-28 has a useful life of 20,000 hours of service and its operating cost is $5.50 per hour. Montecalvo has not yet established a selling price for model PI-28.From a value-based pricing standpoint what is the differentiation value offered by PI-28 relative to the competitor's offering for each 20,000 hours of service?

• A) $223,000
• B) $236,000
• C) $84,000
• D) $249,000

Understand and analyze the relationship between supply, demand, and total surplus.

Interpret the impact of demand and supply shifts on total surplus.

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Definitions:

Competition

An interaction between organisms or species, in which the fitness of one is lowered by the presence of another.

Biological Control Agent

An organism, such as a predator, parasite, or pathogen, intentionally released to control a pest species, reducing its population in a natural or managed ecosystem.

Target

An object, individual, or location selected as the aim of an attack or the focus of an activity or project.

Host Species

A species that provides a source of energy or a suitable environment for a pathogen or parasite to live and reproduce.