Description
Complete your Research Project 1 in a Word document, APA formatted, and then submit it in the Assignment section of the classroom by midnight, EST, Day 7.
The instructions concerning this assignment as well as the grading rubric are reproduced below.
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 are many firms offering nearly identical products. However, there is optimal pricing for the market structures offering differentiated products with many competitors (oligopoly) or a few producers (monopolistic competition). These are much more complex and involved. It has been stated that differentiation in products that creates differences in customer valuation is the most prevalent type of competition. In such markets pricing strategies may include the three C's of cost, competition, and customer.
Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific company by identifying its market structure.
Your paper should be around 10 double spaced pages, in APA Format and structured as follows:
Cover page with a running head
Abstract
1. Perfect Competition
1.1. Description
1.2. Pricing Strategies
2. Monopolistic competition
2.1. Description
2.2. Pricing Strategies
3. Oligopoly
3.1. Description
3.2. Pricing Strategies
4. Monopoly
4.1. Description
4.2. Pricing Strategies
5. Case Study
6. Conclusion
References
Your paper needs to include at least three scholarly sources, i.e. peer reviewed articles. I strongly recommend the use of the APUS library for these sources, as most acceptable resources can only be found in protected databases.
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
Analysis of Market Structures
Name
Institution
Course
Professor
Date
ANALYSIS OF MARKET STRUCTURE
2
Abstract
The research project is about the study of managerial economics which entails the study of
different market structures, their descriptions, their pricing strategies as well as various examples
of the market structures in the real-life world. The first market structure is known as perfect
completion which refers to a market structure where several companies sell same products and
the profit, they make is not existent due to the strong competition experienced in the market. The
other one is monopolistic competition which constitutes of elements of monopoly and
competitive markets. They are firms that offers the same goods and services without perfect
substitutes. Besides, there is another market structure known as oligopoly where companies
within the same industry works together with an intention of increasing their mutual profits
rather than competing with each other. The final market structure refers to as monopoly whereby
a company becomes the only supplier of a particular product. By the end of the study the
researcher will be able to familiarize with the different characteristics of the stated market
structures.
ANALYSIS OF MARKET STRUCTURE
3
Contents
Abstract ........................................................................................................................................... 2
Analysis of Market Structure .......................................................................................................... 4
Perfect Competition ........................................................................................................................ 4
Description .................................................................................................................................. 4
Pricing Strategies......................................................................................................................... 4
Example of a Perfect Competition .............................................................................................. 4
Monopolistic Competition .............................................................................................................. 5
Description .................................................................................................................................. 5
Pricing Strategies......................................................................................................................... 6
Example of a Monopolistic Business .......................................................................................... 6
Oligopoly ........................................................................................................................................ 7
Description .................................................................................................................................. 7
Pricing Strategies......................................................................................................................... 8
Example of Oligopolistic ............................................................................................................ 9
Monopoly ........................................................................................................................................ 9
Description .................................................................................................................................. 9
Pricing Strategies....................................................................................................................... 10
Example of a Monopoly Business............................................................................................. 11
Case Study .................................................................................................................................... 11
Conclusion .................................................................................................................................... 11
References ..................................................................................................................................... 13
ANALYSIS OF MARKET STRUCTURE
4
Analysis of Market Structure
Perfect Competition
Description
It refers to a structure of a market where numerous companies sell s...
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