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Brandon's Computer Shop Is Considering Two Different Configuration Options

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Brandon's computer shop is considering two different configuration options.The first one is to have each computer built by the sales associates when they have free time.The second option is to hire a dedicated assembly technician.Option A has variable costs of $50 per computer and no fixed costs.Option B has a fixed cost of $1,000 but variable costs of only $5 per computer.What is the cross-over point?

Discuss personalized pricing and the role of Big Data in online retail.
Define and explain network effects and their contribution to economies of scale.
Describe the characteristics that make a monopolist a price maker.
Identify major barriers to entry in monopolistic markets.

Definitions:

Entree

The main dish of a meal.

Willingness-to-pay

The maximum amount an individual is prepared to expend on a good or service to procure it, reflecting the value the individual places on it.

Bundles

A grouping of products or services sold together as a single package for a combined price.

Tying Strategies

Business practices where the sale of one product is linked to the purchase of another, often used to increase market share.

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