{"id":124412,"date":"2022-01-26T11:39:38","date_gmt":"2022-01-26T11:39:38","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=124412"},"modified":"2022-01-26T11:39:38","modified_gmt":"2022-01-26T11:39:38","slug":"the-market-for-digital-cameras-is-relatively-new-ajax-inc","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/the-market-for-digital-cameras-is-relatively-new-ajax-inc\/","title":{"rendered":"The market for digital cameras is relatively new. Ajax Inc."},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<\/tr>\n<tr>\n<td>The market for digital cameras is relatively new. Ajax Inc. produces what it regards as a high- quality digital camera. Knockoff Inc. produces what it regards as a low-quality digital camera. However, because the market is so new, reputations for quality have not yet developed, and consumers cannot tell the quality difference between an Ajax digital and a Knockoff digital just by looking at them.<br \/>\n If consumers knew the difference, they&#8217;d be willing to pay $200 for a high-quality camera, and they&#8217;d be willing to pay $100 for a low-quality camera. It costs Ajax $85 to produce a high- quality camera, and it costs Knockoff $55 to produce a low-quality camera. A recent MBA hire at Ajax suggests that Ajax could differentiate its camera from Knockoff&#8217;s by offering a full-coverage warranty (which would fully cover any defect in the camera at no cost to the customer). The MBA estimates that it would cost Ajax $20 per year to offer such a warranty. The MBA also estimates that it would cost Knockoff $40 per year should Knockoff attempt to copy Ajax&#8217;s warranty strategy. Consumers will feel that the camera with the longest warranty is high- quality and that with the shortest warranty is low- quality. The camera companies want to maximize the profit per camera.<br \/>\n What is Ajax&#8217;s profit per camera in the digital camera market?<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<\/p>\n<p>\nThe market for digital cameras is relatively new. Ajax Inc. produces what it regards as a high- quality digital camera. Knockoff Inc. produces what it regards as a low-quality digital camera. However, because the market is so new, reputations for <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-124412","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=124412"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124412\/revisions"}],"predecessor-version":[{"id":124413,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/124412\/revisions\/124413"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=124412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=124412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=124412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}