Abstract
This paper will explore several economic concepts, and its benefits within the capitalistic market system. The main objectives are: how to increase revenue, how to achieve ideal production levels, how to determine fixed variable costs to maximize profits, and how to identify methods to reduce costs. The sole proprietor will operate in a pure monopoly market structure, which is characterized by his unique patented technology. Therefore, as a price-maker controlling the market, with apparent economies of scale, he must quickly identify the production level that gives the greatest vertical distance between the total revenue and total cost curves. More to the point, the company’s quantity of output that equates marginal revenue and
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His new technology will transform the audio by creating a digital book file, thus enhancing the quality of sound, and rivaling the competitions inhuman sound. Furthermore, Will has worked on this invention for several years in his garage while maintaining a lucrative, technical career at High Tech Digital. The invention process has allowed him to develop and patent the product, thereby hoping to transform consumer access to a quality digital reader. In addition, Will realizes that the intellectual property rights guarantees him a return on his investment, and his dollars spent now, will pay off later. However, operating in a pure monopoly market structure as the price maker, poses critical pros and cons that must be addressed. A pure monopoly, by definition is “one firm or sole seller of a product or service with a unique product, where product differentiation is not an issue, according to McConnell, Brue, & Flynn, 2009, Ch. 9, p. 177.” Thus, the barrier to entry due to Will’s proprietary technology is a positive attribute. However, in a pure monopoly setting, Will must ensure his customer’s that his pricing is fair, due to having the price maker status. The demand curve, which is the determining factor of his long term profitability, is also a key factor for Will to consider. Finally worth mentioning, Will’s technical abilities are an asset, but he must improve his business acumen if he is to avoid the common pitfalls, and challenges of bringing a
People are less apt to purchase things unless they are a requirement. The pricing to non-pricing strategies will have about at 75/25% ratio. Considering the company will be a monopoly, and there is no immediate competition, non-pricing strategies are not as important. The company does not have to offer extensive warranties and long hours because it offers a service. The company will use promotional pricing, price cuts, and deals to customers to enhance the customer base. Advertising will be the major type of non-price strategy the company will use to promote visibility in the market. The company will use penetration pricing and bundle pricing in the beginning to ensure that customers understand the initial need for the service. Once the consumer understands the value, the company will raise price to attain the profit-maximizing goal.
The problem identified in this paper is the low margins in the industry. Because margins are low, the profitability of individual companies depends on high
The short story has been an intricate part of literature going back as far as it’s actual “writing down” was invented. Perhaps two of the most intriguing and somewhat tragic short stories is that of D.H. Lawrence’s, “The Rocking-Horse Winner” and Shirley Jackson’s, “The Lottery”. With the classic theme of “luck” and what that means in each story, we see two very different meanings as these two stories unfold. In “The Rocking-Horse Winner”, we see the protagonist, Paul, who endlessly searches and somewhat attains luck in his search for his mother’s monetary desire. Within the lines of “The Lottery”, however, we see a quaint satirical setting of towns’ folk who gather
Since the dawn of literature and drama, comedy and tragedy have always been partitioned into separate genres. Certainly most tragedies had comedic moments, and even the zaniest comedies were at times serious. However, even the development of said tragicomedies left the division more or less intact. Integrating a total comedy and a total tragedy into a holistic union that not only preserved both features, but also blended them into a new and harmonious entity remained elusive. That is, until Catch-22. Using his unique style and structure, Joseph Heller masterfully manages to interlay humor and terror, comedy and tragedy, and reveals in the process the
Vivea, Becky “The things you dint know about Divergent” 28 October 2013, 15 June 2015
This paper will provide insight into pricing strategies to reduce price elasticity, the effects of government policy, the importance of government involvement in the market economy. It will further go on to explain the complexity associated with expansion and the creative ways to converge interests of the managers and stockholders.
Watching the TED talk that Chimamanda Ngozi Adichie gave on “The Danger of a Single Story” was powerful. A single story has insufficient primary sources to have the full comprehension of the real story. Seeing Adichie verbalize issues that I have discovered in myself allowed me to reflect deeply regarding my perception of others. Adichie spoke on how her childhood was filled with English stories and how she gained a perspective on their culture through books. Books are truly powerful storytellers and is often forgotten about in a society where books are taken for granite. A book in another one of my classes was based on Adichie’s idea of how English stories only told one side of the story; this book explored the lives an Igbo society and how English stories portrayed them differently than who they actually were. This proved that I am not alone in making a single story, furthermore
What first struck me as I read both stories was the similarity in the development of the characters. Both stories had an executioner and a victim that were seemingly interchangeable. In “The Lottery,” Mr. Summers was the presider of the ceremony and he fulfilled his duties with an aloofness that gave the reader a false sense of security throughout the story. The crowd encircled him. He knew one would die; in fact he himself was not exempt. Yet, he wistfully remembered a time when the Lottery had more pomp and pageantry. General Zaroff in, “The Most Dangerous Game” also felt a longing for a time when the Game was more exciting. He had a crowd of contestants in his training area that he scorned for lack of skill and wisdom.
The American Dream for many it means the ideals of freedom, equality and opportunity traditionally held by every American. A life of personal happiness in short terms. However this “American Dream “is different for everyone, and it is now being threaten by many factors such as the economy, which is a big part of it, employment and our education as well are being demolished.
Suppose the marginal product of labor is 10 and the marginal product of capital is 8. If the wage rate is $5 and the price of capital is $2, then in order to minimize costs the firm should use
The strong competition among rivals pursuing a similar strategy is vastly based on product differentiation and a niche market attraction, as companies are constantly working to surpass their competitors and seek to provide just what certain consumers want.
Perfect competition is an idealised market structure theory used in economics to show the market under a high degree of competition given certain conditions. This essay aims to outline the assumptions and distinctive features that form the perfectly competitive model and how this model can be used to explain short term and long term behaviour of a perfectly competitive firm aiming to maximise profits and the implications of enhancing these profits further.
The essay “He Would Never Hurt a Fly: War Criminals on Trial in The Hague”
The substitute products, that may take a portion of the market share away from the consumer electronics retail industry, do not create a huge or direct hazard. Today’s society and culture place a big emphasis on technology and it is highly reliant on electronics. The bargaining power of buyers for electronic products is extremely low because the buyers primarily consist of a weak and divided group of individuals, and technology has became a vital need for most people.
In 2006, the patent for optimal computer technology has expired. Orion Technologies Technologies has captured 50% of notebook market with a similar product. Therefore, Quasar Computers enters to compete in an oligopoly market. For the first time, Quasar Computers have to fight for market share considering the prices of laptops in view of competition in the market. It will stabilize the market price to a level that can be obtained optimal gains and differentiate your product to the consumer. In this duopoly revenue, market share and profits depend on absolute prices and price in relation to the competitor. The price differential will determine its market share, revenue and profits.