Question

Let us consider the market for burger. V. (2P) Identify the market structure for your product,...

Let us consider the market for burger.

V. (2P) Identify the market structure for your product, and describe 2 strategies that producers in this market could adopt to compete more effectively or to increase their market power.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Th burger joint is a monopolistic market condition, here, there are many firms in the market that are selling the similar products or the goods that are close substitute to each other. There is free entry and exit in the market and the profit will be zero in the long run.

Two strategy they can adopt to make it more profitable are:

  • advertise and make the product look different in the mind of the consumers, IF the goods are different then in that case the demand will be more inelastic and they can increase the price making more profit.
  • bundle the good with other. for example bundle the Burger with soda or juice that will increase the sale and revenue of the firm.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3. a. Consider R^2 with the Euclidean inner product (i.e. dot product). Let v = (x1,...
3. a. Consider R^2 with the Euclidean inner product (i.e. dot product). Let v = (x1, x2) ? R^2. Show that (x2, ?x1) is orthogonal to v. b. Find all vectors (x, y, z) ? R^3 that are orthogonal (with the Euclidean inner product, i.e. dot product) to both (1, 3, ?2) and (2, 7, 5). C.Let V be an inner product space. Suppose u is orthogonal to both v and w. Prove that for any scalars c and d,...
Select a product, line of products, or brand from a company of your choice and research...
Select a product, line of products, or brand from a company of your choice and research the company’s social media marketing strategies. Carefully examine the social media presence for the product. In an analysis (750-1,000 words), identify how the company utilizes social media to promote the product. Address the following in your analysis: What is the customer segment for this particular product, line of products, or brand?Which social media outlets does the company use to reach the customer segment? Discuss...
Consider an asymmetric duopoly. The market demand is p = 1 − Q. Firm 1 has...
Consider an asymmetric duopoly. The market demand is p = 1 − Q. Firm 1 has zero cost while Firm 2 has constant marginal cost c distributed over the interval 0, 1/2. a. Find the equilibrium when firms compete in quantities. b. Suppose a regulator can marginally decrease c. Will this change increase social welfare and why? Give your answer in terms of the market share of Firm 2. c. Suppose now that firms compete in prices. Find the Bertrand...
Pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are...
Pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as far as the customer can bear. The pricing strategies for a producer operating in a perfect competition structure are also fairly intuitive. They are price takers, and hence price is set at the marginal cost of the product. This is due to the fact that there...
Consider a market with n ≥ 2 firms, where the demand for the product of firm...
Consider a market with n ≥ 2 firms, where the demand for the product of firm i is given by qi = a − bpi + c times summation of pj, where a, b > 0 while c can be either positive or negative. Firms compete in prices. Suppose that all the firms have the same constant marginal costs. Find the equilibrium. How does it change with c and n? Under what condition(s) does this equilibrium exist? Suppose now that...
Consider a market with n ≥ 2 firms, where the demand for the product of firm...
Consider a market with n ≥ 2 firms, where the demand for the product of firm i is given by qi = a − bpi + c times summation of pj, where a, b > 0 while c can be either positive or negative. Firms compete in prices. Suppose that all the firms have the same constant marginal costs. Find the equilibrium. How does it change with c and n? Under what condition(s) does this equilibrium exist? Suppose now that...
Consider a competitive market in which the market demand for the product is expressed as: P...
Consider a competitive market in which the market demand for the product is expressed as: P = 164 - 0.0002Q, and the supply of the product is expressed as: P = 4 + 0.0003Q. The typical firm in this market has a marginal cost of MC = 4 + 1.2q. a. Determine the equilibrium market price and output. Calculate the consumer surplus and the producer surplus at equilibrium in the industry. (2+2+2 = 6 points) b. Determine the output of...
Let us consider a model with two countries (H and F), one factor of production (Labor),...
Let us consider a model with two countries (H and F), one factor of production (Labor), and two goods (A and B). The following table provides the unit labor hours cost structure for the production of A and B in H and F respectively – Country 1 unit of A 1 unit of B H 80 90 F 120 100 Let us also assume that H and F has total labor hours endowment of 72,000 and 60,000 respectively. Using the...
The brand is Apple and the Product is AirPods Discuss the brand’s marketing and communication strategy...
The brand is Apple and the Product is AirPods Discuss the brand’s marketing and communication strategy as it relates to ethics and the principles of conscious capitalism. Would you consider the brand’s messaging ethical? Does the brand implement principles of conscious capitalism? Could the brand potentially improve its messaging by focusing more on either of these? Why? Using your evaluation of the internal and external factors that affect consumer buying behavior and your knowledge of the consumer decision-making process, summarize...
Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its...
Understanding the optimal capital structure Review this situation: Transworld Consortium Corp. is trying to identify its optimal capital structure. Transworld Consortium Corp. has gathered the following financial information to help with the analysis. Debt Ratio Equity Ratio EPS DPS Stock Price 30% 70% 1.25 0.55 36.25 40% 60% 1.40 0.60 37.75 50% 50% 1.60 0.65 39.50 60% 40% 1.85 0.75 38.75 70% 30% 1.75 0.70 38.25 1) Which capital structure shown in the preceding table is Transworld Consortium Corp.’s optimal...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT