Dominant Price Leadership

C) there are many buyers and sellers, and each is large relative to the total market.

d. Calculate the price elasticity of demand in each market and discuss these in relation to the prices to be charged in each market.

This is because of each seller is setting its price based upon the reaction by the prices its competitor establishes.

At point F a monopoly firm attains equilibrium producing OM, output at OP, price. OP competitive price is less than OP, (OP < OP,) and OM competitive output is greater than OM, output (OM > OM,).

The specialty stores we choose to distribute in were office supply stores, stationary stores, and art supplies and craft stores. Office Max, Office Depot, and Staples carry only office supplies. LEAD Buddy and the pencil will be distributed in these stores because it classifies as an office supply. The target market of home school students, as well as art and architecture students, often shop in these stores during back to school season and throughout the year as they need more supplies. Supplies from these office supply stores are seen as higher quality compared to Walmart or other big retail stores. Office supply stores often charge a premium because of their selective distribution strategy and specified target market. LEAD Leaders will be using an exclusive

v. Whether its price is above or below the average price of all companies competing in that geographic region

a. The product is identical (ie, aluminum), all the companies procure the same resources to make production with same production line and process. The firms only differentiate in terms of controlling and lowering the variable cost in order to make a profit as a price-takers. Pricing is somehow fix in global level as aluminum is openly traded in the financial market.

In a perfectly competitive market each firm is a “Price Taker” , i.e. the prices and wages are determined by the market and the firm is so small relative to the size of the market that they can have no influence over the market price. For a market to be

8. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly’s price and output will be which of the following?

According to Bruce Avolio, “What we have clearly learned is that leaders who can balance transactional and transformational leadership across time, situations, and challenges are the most effective” (Avolio 2011, 49). “People have a greater sense of ownership at the highest levels in terms of identification and are willing to provide the extra effort needed to succeed” (Avolio 2011, 49). Yet, Rusty Ricketson wrote, “Those who embrace the followerfirst perspective are not dependent on titles or positions in order to gain a sense of identity and worth. They understand that good leaders are good followers” (Ricketson 2014, 197). Although Avolio supports Full Range Leadership and Ricketson support Following-Leaders there are both

B) no government regulations exist. C) demand curves are perfectly horizontal. D) suppliers will supply any amount that buyers wish to buy. Answer: A 19) Once an equilibrium is achieved, it can persist indefinitely because A) shocks that shift the demand curve or the supply curve cannot occur. B) shocks to the demand curve are always exactly offset by shocks to the supply curve. C) the government never intervenes in markets at equilibrium. D) in the absence of supply/demand shocks no one applies pressure to change the price. Answer: D 20) If price is initially above the equilibrium level, A) the supply curve will shift rightward. B) the supply curve will shift leftward. C) excess supply exists. D) all firms can sell as much as they want. Answer: C 21) An equilibrium in a market is described by A) a price only. B) a quantity only. C) the excess supply minus the excess demand. D) a price and a quantity. Answer: D 3

Dell Company has a successful business strategy. As it is following cost leadership strategy. Its success story is hidden in cost proposition, delivery, and unique customization. In response to the high performance and better chances for growth Dell is applying two way strategy parallel to one another.

* If the Incumbent opts to fight, it may benefit from the Entrant’s higher unit cost and therefore still capture the entire market though at less profit margin. Since the willingness to pay for the Incumbent is $40 more than that for the Entrant, the former can fix any price at 40 more than whichever price fixed by the Entrant. So for any price fixed by the Entrant (Pe),the Incumbent’s price will be given by,

“An observation made of oligopolistic business behaviour in which one company, usually the dominant competitor among

Perfect competition: in this competition, no participant dominates the market thus; no specific seller has the power to set the prices of homogeneous goods. This therefore makes the conditions of a perfect competitive market stricter than the rest of the market structures. In this market, AT&T should be willing to sell their services in a certain price that reciprocates to their demand to maximize profits.