Course Project

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zoryy18

Business Finance

Description

Your consulting firm was just granted an exclusive contract for Vanda-Laye Corporation. You now must decide your pricing policy. The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist.

Tasks:

  • Analyze what a monopolist is and the effects it could have on the consulting firm.
  • Evaluate if any antitrust policies need to be put into place. How will your pricing policy be justified?
  • Explain the implications of increasing the price you will charge Vanda-Laye Corporation verses what it was previously charged.
  • Submit a 2-3 page Microsoft Word document, using APA style.

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Explanation & Answer

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Running head: ECONOMICS

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Economics
Name
Course
Date

ECONOMICS

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Economics

A monopolist is a firm that is the sole seller of products, and they have no close
substitutes. Since monopolists are single product and service providers, they usually have no
competition, and there are no restrictions on the prices. The monopolists utilize the acquisitions,
mergers, and patents to maintain their dominance in the market and prevent entrants in the
market. These monopolies when left unregulated and not monitored, they can have adverse
effects on businesses and the consumers (Hawley, 2015). Additionally, they can als...


Anonymous
Awesome! Perfect study aid.

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