Quasar Computers and Different Market Structures ECO/561 July 22‚ 2012 Quasar Computers and Market Structures There are four types of market structures in the economic marketplace; monopoly‚ oligopoly‚ monopolistic competition and pure competition (McConnell‚ Brue‚ and Flynne (2009). The Market Structure simulation (University of Phoenix‚ 2012) presented a case of Quasar Computers and the business decisions that the company faced in each of these business structures. This paper presents
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Introduction The world’s first all-optical notebook computer was launched in 2003 by Quasar. The Neutron is the result of revolutionary efforts by the company. The product processor and memory uses high-speed optical conductors that are five times the speed of existing microchip based companies. The Tata simulator exercise is an aid to decide which industry structure Quasar should use to increase profits‚ create competitive advantage and explores implications of each on business ventures. Market
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in free markets‚ they will inevitably be led to further the public welfare by an invisible hand(i.e. the market competition); • Market competition drives self-interested individuals to act in ways that serve society; when private individuals are left to seek their interests in free markets‚ they will inevitably be led to further public welfare by an invisible hand; • Market competition ensures pursuit of self-interest in market advances the public welfare which is a utilitarian argument; • Govt
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forces: * competitive rivalry * threat of new entrants * threat of substitutes * power of customers / buyers * power of customers Threat of new entrants New entrants into a market will bring extra capacity and intensify competition. The threat from new entrants will depend upon the strength of the barriers to entry and the likely response of existing competitors to a new entrant. Barriers to entry are factors that make it difficult for a new entrant to gain an initial
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Fast food companies such as McDonald’s‚ Taco Bell‚ and KFC are all an example of monopolistic competition. Monopolistic competition is characterized by (1) a relatively large number of sellers‚ (2) differentiated products (promoted by advertising)‚ and (3) easy entry and exit from industry (McConnell p.445). Fast food companies fit into monopolistic competition because consumers perceive that there are non-price differences among the competitors’ products‚ there are many producers and customers
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EXITO Economics for Managerial Decision Making: Market Structures JOSE E ORTIZ ANDINO ECO/561PR - ECONOMICS 12/03/2013 ADELAIDA TORRES-DILAN Introduction This review paper shines a light on how vital the use of economic tools is in making managerial decisions as reflected in the simulation. Decision making process of management is described in different market structures. Just as it pertains to any for-profit business organization‚ the goal is to cut and
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an example of price discrimination? Answer Airlines charging lower prices to travelers who stay over a Saturday night Student discounts at movie theaters Back-to-school sales Discounted coffee for senior citizens at restaurants Question Perfect price discrimination Answer is charging different prices to different buyers. is an attempt by monopolists to capture consumer surplus as profit. can eliminate the deadweight loss to society of a monopoly. do all of these. Question A monopolist
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TOPIC 1: MARKET STRUCTURE AND MARKET POWER 1.1. Competitors Anyone that produces a substitute for a firm’s product. - Cross price elasticity: Measures the substitution degree of a product for another. P.E.>1 – The demand is elastic‚ a change in price is reflected as an even major change in demand. The extent of the variation is higher as higher is the substitution degree of a product for another. We can say two firms are competing when a price increase by one firm‚ drives its customers to the other
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based on key drivers of changes about which there is a high level of uncertainty. Porter’s five Forces Framework Porter’s five forces theory analyses the competition that surrounds a company‚ measuring its intensity and helping this same company finding solutions to adapt its strategy depending on the type of existing competition. * The threat of entry * The threat of substitutes * The bargaining power of buyers * The bargaining powers of suppliers * The extent of rivalry
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exclude the general population based on this negative public perception. Capital requirements would also be a barrier to entry due to the high initial overhead associated with bakery equipment. Strength of Competitors Bread Empire Bakery will face competition both from specialty bakeries and traditional bakeries. There are many competitors in the market‚ both big and small‚ but their offerings do not match those of Bread Empire Bakery in terms of healthfulness‚ quality of ingredients and variety of specialty
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