Question description
Select a new, realistic
good or service for an existing industry, preferably an industry you
current work in or one in which you are interested in working.
Develop a 1,400-wordevaluation
of pricing strategies available producers of your selected
product. This will include statements about the market structure and the
elasticity of demand for the product, based on text book principles and
real world products under development.
Identify the market structure of the industry (monopoly, oligopoly, monopolistic competition, pure competition).Determine elasticity of demand for various quality ranges of the
product based on textbook theory and judgments about the degree of
luxury vs. necessity represented by various brands (e.g. a luxury car vs
an economy car).Determine how pricing relates to elasticity of demand for competing models.Explain how changes in the quantity supplied as a result of pricing
decisions might affect the company’s marginal cost, marginal revenue,
and market share as production volume rises. What reaction might be
expected by other producers if one producer changes its pricing
strategy?Determine strategies that a company might use to develop product
differentiation and market segmentation. What alternative non-pricing
strategies are available? What alternative non-pricing strategies can be
used to increase barriers to entry?Discuss how producers might alter the mix of fixed and variable costs to support their pricing strategy.
Format the assignment consistent with APA guidelines.
