University of Phoenix Price Strategy
University Pricing Strategy The term market structure refers to the characteristics of the market. These characteristics may be competitive or organizational characteristics, or any other characteristics, which can best be used to describe services and goods market (Solow, 1998). Major characteristics that for long have used by economists in their attempt to describe the market structures include the mode of pricing, as well as, the nature of competition in that given market. On the other hand, the market structure may be described as the number of firms in a given market engaging in the production of similar services and goods (Solow, 1998). Admittedly, the market structure has a tremendous influence on the behaviour of firms in the market. This is because it affects the price at which various firms offer their products in the market. For instance in the competitive market, the industry has the sole duty of setting the price while the firms are price takers. The market structure has a tremendous impact on the supply of goods and services in the market (Solow, 1998).
The University of Phoenix can be classified under a competitive market structure that is sometimes known as the monopolistic market structure. This is where there are a large number of firms whereby each of the firms commands a small portion of the market share. In addition, this firms offer slightly differentiated products. This is a typical market structure in which the University of Phoenix competes. This is because there are a significant number of universities just like Phoenix that offers slightly differentiated products. Therefore, the existence of many universities with products that are slightly differentiated makes this market a typical monopolistic market structure. The demand curve in a monopolistic firm is usually highly elastic though not perfectly elastic. This implies that
References: Solow, R.M., (1998). Monopolistic Competition and Macroeconomic Theory. U.S.A: Cambridge University Press. Martinez, J.G., (2006). Distance Education as A competitive Tool. Retrieved from http://focus.bayamon.inter.edu/a5_n2/martinez_a5_n2.pdf.