Section 11.3 details a future change in the way consumers experience shopping with online retailers like Amazon.

If a company like Amazon has the ability to predict your purchases and make suggestions that fit your current need, how far-fetched is it that they could accurately predict your need and fulfill your purchase intentions before you start the process of placing an order?

If this indeed is the future of shopping, Amazon and consumers will have to come to a new understanding of what shopping truly means.

Write a paragraph about the main considerations Amazon would have to think about to make this a viable approach to providing for customers needs. What risks would they face? What would be the benefit of shipping products to consumers before they actually knew they needed them? What type of customer would this type of service work best with? What type of products would this work best with?

On the consumer side, write a paragraph about what concerns you would have if you recieved a package of goods you needed but hadn’t purchased. What would make this model attractive to you? What type of products, if any, would you like to have automatically shipped to you? How would you give consent to a service like this?

Teleport company is a monopolist offering telephone service in the local market of one city. They were able to identify two market segments with demand as D_{1} = 120 – 2P_{1} for senior people with age 65 and older and D_{2} = 180 – 8P_{2} for people less than 65 years old. The cost of providing service for one customer is $10. If one single price is charged,

If one single price is charged, what is the price to maximize the profit ?

If one single price is charged, what is the largest profit if the company charges the optimal price?

If the company charges different price for each segment , what is the price to maximize the profit in the market of the senior people?

If the company charges different price for each segment , what is the the largest profit in the market of the senior people with the optimal price charged?

If the company charges different price for each segment, what is the price to maximize the profit in the market of the people less than 65 years old ?

If the company charges different price for each segment , what is the the largest profit in the market of the people less than 65 years old with the optimal price charged?