Why could Starbucks sell more sandwiches than prêt ?

Slides:



Advertisements
Similar presentations
Question: What is worse for consumers than a Monopolist? Two monopolists. Vertical Markets: An analysis.
Advertisements

Chapter 4 Marketing Begins with Customers Study Guide
Preview of 4 Coming Attractions Today: Derivation of the Demand Curve –Consumers (Buyers) Next: Derivation of the Supply Curve –Firms (Sellers) Later:
Choice With Uncertainty Review. The green line reflects an interest rate increase or decrease? Decrease This is the formula for present or future value?
How we make Spending Decisions. Diminishing Marginal Utility Each additional unit of a product one buys is less useful than the one purchased before it.
PowerPoint Slides prepared by: Andreea CHIRITESCU
Monopolistic Competition
LO Econ 2610: Principles of Microeconomics Yogesh Uppal
© 2007 Thomson South-Western, all rights reserved N. G R E G O R Y M A N K I W PowerPoint ® Slides by Ron Cronovich 1 P R I N C I P L E S O F F O U R T.
What is the most that you would be willing to pay for an Ipod if you couldn’t get them any cheaper? 1.$600 or more 2.$500 3.$450 4.$400 5.$350 6.$300 7.$250.
Please make your selection... 1.Choice One 2.Choice Two 3.Choice Three.
Monopolistic Competition
1 Marginal Utility & Consumer Choice: Chapter 5. “I’ve been rich and I’ve been poor, and believe me, it’s better being rich” --- Sophie Tucker, a 1920s.
November 24, Review HW: Activities 3-13, 3-14, Lesson 3-9: Monopolistic Competition 3.HW: Activity No Current Event this week! 5.Check.
Theory of Consumer Behaviour Economics – Class 2.
Lesson 7.6: Markup and Discount
ADVERTISE THIS! Our Product Name: Price: Where to buy it: How to use it and good points:
A.P. Microeconomics Household Choices Take a few minutes to make your choices!!
Marketing CH. 4 Notes.
 Gain From Participating in Markets  Consumers: gain satisfaction  Producers: gain profit  Marginal Benefit:  The maximum price that a consumer will.
Basic Problems in Economics
Unit Three ECONOMICS DemandandSupply. PA Standards E; G; D; E; F.
1.6 Theory of Consumer Behavior Blog posts: "Utility" Theory of Consumer Behavior (AP only unit) Total Utility and Marginal Utility Utility Maximization.
Shopping Wisely Coach Markus. Objectives Compare purchasing choices on items that you use Gather appropriate information to make wise buying decisions.
Economics Vocabulary Chapter 3
What consumers are willing to pay for goods and services.
Marketing Plan Expanding the 4 P’s.
Review of the previous lecture A monopoly is a firm that is the sole seller in its market. It faces a downward-sloping demand curve for its product. A.
CHAPTER 16 Monopolistic Competition and Product Differentiation PowerPoint® Slides by Can Erbil © 2004 Worth Publishers, all rights reserved © 2004 Worth.
The Changing Reference Collection - from a Collection Development Point of View ALA Annual 2002 RUSA CODES Margaret Landesman Head, Collection Development.
Pricing products Cost Behaviour 1.Direct Labour and Direct Materials are Variable Costs: – Expenses that tend to change in direct proportion to the volume.
GROUPS FOR MARKETING. Public Relations 4 people  You are responsible for creating an announcement to be read to the school.  You are also responsible.
PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University Monopolistic Competition 1 © 2012 Cengage Learning. All Rights Reserved.
Unit Rates. Rate – a ratio that compares different kinds of units by division to obtain a unit rate or rate per unit. Unit Rates (You are finding how.
Imperfectly Competitive Markets Monopolistic Competition Oligopoly.
6.1 Ch. 6: The Production Process: The Behavior of Profit- Maximizing Firms Production is the process by which inputs are combined, transformed, and turned.
Consumer Choice and Utility Maximization 1. Would you see the movie three times? Notice that the total benefit is more than the total cost but you would.
Copyright©2004 South-Western 3 American Business.
7 Principles of Economics
McGraw-Hill/Irwin Copyright  2006 by The McGraw-Hill Companies, Inc. All rights reserved. THE LOGIC OF INDIVIDUAL CHOICE: THE FOUNDATION OF DEMAND AND.
In Class – Week 2 Gains from Exchange Why do people willingly trade?
Chapter 16 Equilibrium Defer the discussion of the market supply curve to later chapters and only denote it by S(p): at any given price p, how many units.
Week 8 DIFD 321 Marketing 2.0. WHAT IS MARKETING? The action or business of promoting and selling products or services, including market research and.
EXAMPLE 4 Solve a multi-step problem Computers You are buying a new computer and find 10 models in a store advertisement. The prices are $890, $750, $650,
Markets Markets – exchanges between buyers and sellers. Supply – questions faced by sellers in those exchanges are related to how much to sell and at.
Utility Maximization. Utility and Consumption ▫Concept of utility offers a way to study choices that are made in a more or less rational way. ▫Utility.
PERSONAL TRAINING As a Profit Center THE PLATINUM SERIES The System That Works A FitTrac Module.
Chapter 10 Review.
Business Education 9 Jeopardy Chapter 5 Review. Jeopardy Groups Olivia Z. Vanessa C. MichaelRileyOlivia S.HelenaBrendanJeremy ZsophiaMichelleChrisBrandon.
QOD for 3/14 After writing today’s date, please respond to the following: –Why do people discriminate against other people? –Remember five lines = five.
Consumer Behavior ·The goal of consumer behavior is utility maximization ·Consumer choice among various alternatives is subject to constraints: ·income.
END ENTER Torfaen Working Group. END We Are Learning To:-  Make choices when selecting foods  Understand the difference between healthy and unhealthy.
Monopolistic Competition Economics 101. Definition  Monopolistic Competition  Many firms selling products that are similar but not identical.  Markets.
What’s Marketing? Oxford Dictionary: Market : A place at which trade is conducted. Marketing: The action of buying or selling in a market.
Pricing A Menu. You have chosen your menu items, written enticing descriptions and created an amazing design….now what? PRICING THE MENU!!
Math – Additional Applications to Business and Economics 1.
Relationship Between Demand, Supply and Price. Demand – the quantity of a good or service that consumers are willing and able to buy at a particular price.
What is the P-Ville Stock Market (PSM)? The P-Ville Stock Market (PSM) is a way for citizens in P-Ville to buy and sell stocks and gain points from selling.
Opportunity Cost Review Take 2 minutes: What does “there is no such thing as a free lunch mean” to you?
Budgets and Businesses Workshop. Budget: is a plan that shows income, spending and saving. Income: Spending: Saving:
CHAPTER 8: SECTION 3 A Monopolistic Competitive Market Characteristics of a Monopolistic Competitive Market A monopolistic competitive market has the following.
Here is a list of points we were told at café 1809 (you may have more to add, this is not an exhaustive list). Underline or highlight all the ones which.
What three factors determine the demand for a product?
Week 8 DIFD 321 Marketing. WHAT IS MARKETING? The action or business of promoting and selling products or services, including market research and advertising.
Web Design And Development Company
Marginal Revenue & Monopoly
Monopolistic Competition
Monopolistic Competition
Similarities Differences
My day.
Presentation transcript:

Why could Starbucks sell more sandwiches than prêt ?

Why could Starbucks sell more sandwiches with similar price Q P D S A P Q S D A

Why could Starbucks sell more sandwiches People tend to buy sandwiches because they have no time for breakfast or lunch Go to the Main Library Time is so valuable to me and I ’ m willing to pay much to “ buy the time ” Even a minute has a high marginal utility

Located near the Main Library I have no other choices but to go to Starbucks unless I ’ m willing to spend at least 15 minutes Express Line Take less than 2 minutes to wait

Why could Starbucks sell more sandwiches Face the competition with Maxim Attract people who care about the brand and the so- called “ hand-made ” sandwiches

Even with similar price, Starbucks could sell much more sandwiches that prêt