Each of these divisions operates within four different market structures. The market structures that they operate in are Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition. In this paper, it will summarize the simulation and give a brief understanding of each step in the decision process. In economics, markets are categorized according to the structure of the industry serving the market. Industry structure is categorized on market structure variables, which are believed to determine the extent and characteristics of competition.
They also lack scientific research behind their product without a research institute. Gatorade has a very simple pricing strategy. Gatorade uses Value-Based Pricing, which is a pricing strategy that takes research on how much a product is worth to the consumer and prices products. In other words, the product's price is changing dependent upon its demand. Currently, Gatorade prices vary, but the standard 250ml sports drinks price varies from $1.29 to $1.59, which is lower than its main competitor PowerAde which varies from $1.79 to $1.99.
Describe at least two ways in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points) State taxes are different in most states, another way they could impact is your license, can you renew it, will it expire soon, you may need a specific license for each state just to run your business. Describe at least one advantage and one disadvantage of price ceilings and price floors. Do you think price ceilings and floors are more helpful or more harmful to consumers and the economy?
A monopolistic competition is where several firms compete in the same market offering similar products or services but the products differ which makes it not a perfect competition. An oligopoly consists of fewer firms in a given market and each firm takes into consideration other firms and their actions in order to anticipate their responses. The industry that I am choosing to write my “Differentiating Between Market Structures” paper on will be on the automotive industry. The reason why chose this industry is because of how much the influence of the supply and demand really fluctuates the price and how other firms that are competing in the same industry are affected by the decision and actions of each other. With the automotive industry, the costs of vehicles vary depending on a lot of different factors.
An oligopoly is much like a monopoly, in which only one company exerts control over most of a market. In an oligopoly, there are at least two firms controlling the market. An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. Firms within an oligopoly produce branded products and there are also barriers to entry.
There are at least two distinct approaches for answering this question, one in psychology and one in economics. The former concerns perception, cognition, personality and behavior at an individual level, while the latter concerns the reasons and the incentives that may prompt a man or a woman to become an entrepreneur. As far as the psychological approach is concerned, we will explore the personality of Howard Schultz, chairman and CEO of Starbucks, based on the The Big Five Personality dimensions used by Zhao and Seibert (2006). They found that on
(wisegeek.com) A command economy, also known as planned economy, the central or state government regulates various factors of production. The government is the final authority to take decisions regarding production, utilization of the finished industrial products and the allocation of the revenues earned from their distribution. China and former USSR are perhaps two of the best instances of Command Economy, but countries like North Korea and Cuba still practice command economy. (economywatch.com) A mixed economy is the combined of both market and command economies. A more specified definition of mixed market is an economic system that includes a mixture of capitalism and socialism.
• Political • Economical • Social • Technology ”The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool” http://www.businessballs.com/pestanalysisfreetemplate.htm Examples of influences required changes are for instance a government change a law or cancel a big order thus the consequences for the organization are financial problems , overproduction. However changes may be less dramatic for the business for example implementation of new software for more effective work. Section 2 – Understand the purpose of supporting change in a business environment 1. Identify
B) The study of how consumers spend their income. C) The study of how producers decide what inputs to hire and what outputs to produce. D) The study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. E) The study of how consumers and producers meet each other at the market. Answer: D Diff: 1 Topic: Definition of Economics 3) Which of the following is a microeconomic topic?
The Cave Hill School of Business Executive Masters in Business Administration Topic: The Application of Price Discrimination to Enhance Profitability Identification Number: 20053976 Number of words: 4,370 Number of Pages: 18 Course Name: Managerial Economics Course Code: GEMA6320 Facilitated by: Dr. Justin Robinson TABLE OF CONTENTS Executive Summary 3 1.0 Introduction and Background 4 2.0 Problem Statement 5 3.0 Methodology 5 4.0 Literature Review 6 4.1. Laws Targeting Price Discrimination 6 4.2 The Three Types of Price Discrimination 7 4.3. How can Price Discriminate? 8 4.4. How can Price Discrimination be used by firms to enhance profitability?