Economics for Managerial Decision Making: Market Structures
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- Category: History
- Date Submitted: 01/29/2010 01:40 AM
- Pages: 5
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In week four, the innovative firm, Quasar, is introduced in the market structures simulation. Quasar is leading the way in the computer industry with the design and manufacturing of an all optical notebook computer. Through the market structures simulation, examples on how decision-making differ among the market structures of monopoly, oligopoly, monopolistic competition, and perfect competition. This simulation and the real-life scenarios detailed within, provide insight and understanding to the intricate decisions that are made in each type of market structure and the impact of those decisions. In the Quasar simulation, the C.E.O. utilized pricing as tool for optimizing profits, and with the input from the board of advisors decided to allocate funds to advertising, technology, and other ventures. (University of Phoenix, 2008) Through the course of this paper, a solution will be created using strategic variables, in order to sustain the economic profits that the firm can earn. This paper will also look to identify pricing and non-pricing strategies that will further facilitate the goal of maintaining economic profits. Finally, this paper will ascertain what kind of innovations will best prolong Quasar’s distinctiveness.
In 2003, Quasar launched the world’s first all optical notebook computer branded Neutron. Because of Neutron’s processor, memory use and high-speed optical conductors, Neutron boasts approximately 5 times the speed of existing microchip-based computers. Neutron employs high energy saving technology with rechargeable batteries that last up to 3 days and due to the patented technology, Quasar and Neutron have a monopoly on this product line for the next 3 years. According to McConnell and Brue a pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes. (McConnell and Brue, 2004) A pure monopoly is also identified by having blocked entry or certain economic, technological or legal, barriers...
In 2003, Quasar launched the world’s first all optical notebook computer branded Neutron. Because of Neutron’s processor, memory use and high-speed optical conductors, Neutron boasts approximately 5 times the speed of existing microchip-based computers. Neutron employs high energy saving technology with rechargeable batteries that last up to 3 days and due to the patented technology, Quasar and Neutron have a monopoly on this product line for the next 3 years. According to McConnell and Brue a pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes. (McConnell and Brue, 2004) A pure monopoly is also identified by having blocked entry or certain economic, technological or legal, barriers...