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.
Developa 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, competitive monopoly).
·
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.
Formatthe assignment consistent with APA guidelines.
