This essay focuses on an economist and strategic planner. generate a report explaining the consequences
of the market structure in which the company operates.
Discussion Question 1:
You have just been hired by a company as an economist and strategic planner.
Your company has asked you to generate a report explaining the consequences
of the market structure in which the company operates. Assume that the market
structure is an oligopoly. Explain to management how this structure could
influence decision making, especially pricing, output, advertising, and the use of
resources in an oligopolistic market, as compared to other market structures.
Justify your answer.
This is because in the present age the sale and purchase of goods are with the help of agents and samples. Hence, the sellers and buyers of a particular commodity are spread over a large area. The transactions for commodities may be also through letters, telegrams, telephones, internet, etc. Thus, market in economics does not refer to a particular market place but the entire region in which goods are bought and sold. In these transactions, the price of a commodity is the same in the whole market.
According to Prof. R. Chapman, “The term market refers not necessarily to a place but always to a commodity and the buyers and sellers who are in direct competition with one another.” In the words of A.A. Cournot, “Economists understand by the term ‘market’, not any particular place in which things are bought and sold but the whole of any region in which buyers and sellers are in such free intercourse with one another that the price of the same goods tends to equality, easily and quickly.” Prof. Cournot’s definition is wider and appropriate in which all the features of a market are found.
Price discrimination is the practice of charging different customers or groups of
customer’s different prices for the same product;
Firstly, Why does price discrimination occur?
Secondly, Describe the conditions that must be present for price discrimination to
Thirdly, Justify your answer.
Start reviewing and responding to at least two of your classmates’ postings as
early in the week as possible. Participate in the discussion by asking a question,
providing a statement of clarification, providing a point of view with a rationale,
challenging an aspect of the discussion, or indicating a relationship between one
or more lines of reasoning in the discussion. Please post peer responses by the
end of the week.