Week 3 Dqs Eco 561
Week 3 Dqs
#1
INDIV DQ DUE Day 2 (Wednesday)
Complete the Economics for Managerial Decision Making: Market Structures simulation. In two of the four market structures, using price to compete is not an option.
What can Quasar do to improve revenues in one of these structures?
Based on the simulation it would seem that Quasar began operating in a monopoly but then their market became an oligopoly market since their only competition is Orion technologies. By definition an oligopoly market occurs when there is only the existence of a diminutive number of high producing firms (McConnell, Brue, & Flynn, 2009, pg. 178). To improve their revenues using non-price techniques, Quasar could develop new eye catching packaging, and increase their marketing and advertising efforts.
Select a company not selected by another student that has used this strategy. Describe the effects on the organization of using this strategy.
An example of an oligopoly organization would be the four major music company who controls over 80% of the market. They are Warner Music Group 15%, Universal Music Group 32%, EMI Group 10%, & Sony BMG 26% (McDonald, 2011). Operating using this model can be advantage since extant organization dejects the introduction of new music companies. This is due mainly to the established and limited availability to resources or processes. Additionally new companies would have to spend large amount of capital in effort to sway consumers to purchase their product over the larger music labels.
Reference:
McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin
McDonald, H. (2011) Big Four Record Labels. Retrieved from: http://musicians.cm/od/musicindustrybasics/g/BigFour.htm
#2
INDIV DQ DUE Day 5 (Saturday)
What market structure best characterizes the market in which University of Phoenix competes? How does this structure influence the university’s pricing strategy?
#1
INDIV DQ DUE Day 2 (Wednesday)
Complete the Economics for Managerial Decision Making: Market Structures simulation. In two of the four market structures, using price to compete is not an option.
What can Quasar do to improve revenues in one of these structures?
Based on the simulation it would seem that Quasar began operating in a monopoly but then their market became an oligopoly market since their only competition is Orion technologies. By definition an oligopoly market occurs when there is only the existence of a diminutive number of high producing firms (McConnell, Brue, & Flynn, 2009, pg. 178). To improve their revenues using non-price techniques, Quasar could develop new eye catching packaging, and increase their marketing and advertising efforts.
Select a company not selected by another student that has used this strategy. Describe the effects on the organization of using this strategy.
An example of an oligopoly organization would be the four major music company who controls over 80% of the market. They are Warner Music Group 15%, Universal Music Group 32%, EMI Group 10%, & Sony BMG 26% (McDonald, 2011). Operating using this model can be advantage since extant organization dejects the introduction of new music companies. This is due mainly to the established and limited availability to resources or processes. Additionally new companies would have to spend large amount of capital in effort to sway consumers to purchase their product over the larger music labels.
Reference:
McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin
McDonald, H. (2011) Big Four Record Labels. Retrieved from: http://musicians.cm/od/musicindustrybasics/g/BigFour.htm
#2
INDIV DQ DUE Day 5 (Saturday)
What market structure best characterizes the market in which University of Phoenix competes? How does this structure influence the university’s pricing strategy?