Discuss the Main Factors Affecting Product Pricing in the Uk

1) An Oligopolistic market structure is a structure where very few large businesses sell a particular standard Good or differentiated Good, and to whose market entry proves difficult. This in turn, gives little control over product pricing because of mutual interdependence (with the exception of collusion among businesses) creating a non-price competition meaning they are the ‘price setters’. A good rule to help classify an

The documented history of the incident which occurred at Rosewood, Florida in January 1923 is a group of recollections from a few of Rosewood survivors, new stories and/or coverage. Racial violence in the nation before the events of Rosewood happened. Because of the racial tension during and after the war, many blacks migrated from the south. Florida’s government soon supported black leaving the South. “…proposed Congress purchase territory, either foreign or domestic, and transport black such regions where they could live separate lives and govern themselves” pg 4.

Over the years, firms have increasingly been maximising shareholder value. However, Steve Denning, a former director of the World Bank, author of six leadership and management books and columnist for Forbes, disagrees. His article “The Origin of the ‘World’s Dumbest Idea’: Milton Friedman”, was published on June 26, 2013 on Forbes, debates against Friedman’s argument that the social responsibility of corporations is to make money for its shareholders. The main issue here is whether the maximisation of shareholder value as the guiding principle of executives is detrimental to the corporation. Although Denning has exhibited valid points in his argument, his lack of citation, biased view on most arguments and his tone has dampened the credibility

Barriers to entry - Sunk cost, technology, economies of scale, limiting pricing and brand loyalty of incumbents can all be barriers

While this writer had some rudimentary knowledge of the impact serotonin had on the brain, "Why? The Neuroscience of Suicide" by Carol Ezzell piqued my curiosity on the role levels of serotonin and the process by which it is absorbed in the brain affect suicidal patients. This article was recently posted on the Neurology and Behavior website as supplemental reading for neurology and behavior's spring semester 2003 class. In this article the writer Carol Ezzell weaves her own personal experience with informative reporting of groundbreaking neuroscience research on suicide. Through further research I discovered various articles on a group of scientists from Columbia

In all three degrees of price discrimination firms are able to make more profit and eliminate any excess capacity they may have. Firms are able to do this by charging higher prices to those consumers with a more price inelastic demand for their product. The firm is reducing the welfare of these consumers by changing them at the maximum price they are willing to

Can business thrive by profit alone? Barry (2000) described Milton Friedman’s short essay, in the 1970’s, as extremely controversial, in which he denied that corporate executives had any moral duty to relax the conditions of profit maximization on behalf of the wider interests of society. This example of the “bottom line” of business has been demonstrated within the past couple of decades by publicly criticized companies, for fraudulent activities, such as, Enron, WorldCom, and HealthSouth along with many others. These company executives were willing to sacrifice the vast majority and greater good of society for profit gains. This mindset left many of loyal investors, consumers and employees without a sound stabilized future. There are also many businesses that produce a high yield on their investments;

The article does not have an author attributed to it, and it is, presumably, written by the staff of AIDS Alert. The organization is a subsidiary of Thomson Publishing—Thomson American Health Consultants—and declares itself as being on the cutting edge of AIDS related discussions and trends. The publication, I assume, is written for and distributed to medical, scientific, and sociologist scholars, as well as those who are involved in promoting research or funding for AIDS and other medical-related concerns. While this article is written in a plain language and is published in 2008, I do have to question about its timeliness. If I were to be an AIDS scholar, would this be the latest in research and trends? I don’t know; I do know this: it will work well for this essay and my purposes here.

b) In a monopolistic competition structure, although there are numerous firms, they carry different products. Due to product differentiation, each company is able to somewhat control their own pricing.

Friedman argues that the only responsibility a business has to society is to act in its own self-interest to create revenue and remain successful in the economic system (158).Created to make a profit by providing a task or service, a business must “use its resources and engage in activities designed to increase its profits” (Friedman 164). A business could use any tactic to gain a profit as long as they remained “within the rules of the game” (Friedman 164). The rules implied that no deception or fraud could take place while the corporation obtained their profit.

Price discrimination can be defined as when the same good or service is sold at different prices to different consumers. If we look at this definition of price discrimination, for an example, we can show that price discrimination can be seen in the entrance tickets of parks such as Universal studios; this is due to the fact that there are discounts for children and senior citizens. (Phlips L. , 1983) However, this can be seen as not being discriminative at all due to the fact that if the price difference full reflects the difference in the cost of carrying the good from the seller’s location to the buyers’ location.

In their theories of how a business should operate, R. Edward Freeman and Milton Friedman hold virtually opposite beliefs as to what businesses’ responsibilities should be. In favor of the Stakeholder theory, Freeman believes that any person or organization that has a “stake” in the business should also play a role of participation in the business’s actions and decisions. In the other corner of the ring stands Milton Friedman, who holds the belief that said business is only responsible for those that actually own stock in the business – the owners, or stockholders.

pricing closely, as being out of step with the market can cause dramatic market share changes in a

Competition within the industry as well as market supply and demand conditions set the price of products sold.

This is also linked into the behaviour of the buyers in the market. Buyers are also price takers because they can purchase as much as they wish without influencing the market price. The final assumption is important when considering the long term equilibrium price of a firm in perfect competition. This assumption is that entry into the market is free and that there are no barriers to entry. Any costs incurred are incurred by all of the suppliers; an entrant will pay no additional cost for entering the firm.