SIGNALLING, STRATEGY & MANAGEMENT TYPE Introducing Framework T3 and GEMS for Business Strategy Patrick A. McNutt The usual disclaimer applies. The views expressed here are those of the author This is an E-book. It is available in camera copy format with free download from www.patrickmcnutt.com. December 2008 ACKNOWLEDGEMENTS Thank you for reading the E-book and making a contribution to the charity as identified on my web portal. The E-book can be read independently or in conjunction with
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between competitive and monopolistic pricing, but can vary depending on interdependence with among competitors. Is there a presence of economic profits? Short term yes, but long term no Possibility in the long term for profit Zero economic profit in the long term Can maximize profits by working together. Some long-run economic profit possible 3.2 Evaluate the effectiveness of competitive strategies within market structures. Perfect Competition: This market structure
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discontinue operations. The results will provide a rational. The evaluation reveals the financial performance of the company using the information provided in the scenario, including consideration for all the key drivers of performances, including company profit or loss for both the short term, and long term. The discussion includes how each factor influences managerial decisions, using the calculation to support the decision. The analysis further recommends how the company can improve its profitability
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Explain, in your own words, why profit maximization happens at the point where MR = MC, and not where MR is greater than MC. Refer to Figure 7.2 Should the 4th unit of output be sold? What about the 5th unit, 6th unit, 7th unit, 8th unit, 9th, or 10th unit? Use your understanding of MR = MC rule to explain. I have to say that this question was the hardest discussion question for me so far through out the class. I think most people are confused by total revenue and total cost and marginal revenue
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Pricing Current stated prices of our products are as follows: Honey | Rs. 300 per Kg (less than brands) | Vegetables | +20% of market rate | Mushroom | Rs.300 per Kg | Banana | +20% of market rate | Egg | Rs.7 | As we can see from the spread of prices above and below the competitive market average, there is a need for a uniform pricing strategy. The first step is to realize that our target market is not the same as that of regular fruits and vegetables and hence we should not
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Group Project Stage 1: 1) Dependent Variable: Quantity of economy cars. The units of measurement that will be used in this analysis are quantity. For example, 1 economy car, 2 economy cars, etc. 2) Independent variables: a. Price (P): This variable will be important because price is a factor when renting a car. Price is also a factor when 60% of customers are college students. We expect to not see a correlation when prices go up, conjointly rental of cars will decrease.
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Exercise 9 Solution Chapter 11 Firms in Perfectly Competitive Markets 11.1 Perfectly Competitive Markets 1) Which of the following is not a characteristic of a perfectly competitive market structure? A) There are a very large number of firms that are small compared to the market. B) All firms sell identical products. C) There are no restrictions to entry by new firms. D) There are restrictions on exit of firms. Answer: D Comment: Recurring Diff: 1 Page
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SIGNALLING, STRATEGY & MANAGEMENT TYPE Introducing Framework T3 and GEMS for Business Strategy Patrick A. McNutt The usual disclaimer applies. The views expressed here are those of the author This is an E-book. It is available in camera copy format with free download from www.patrickmcnutt.com. December 2008 ACKNOWLEDGEMENTS Thank you for reading the E-book and making a contribution to the charity as identified on my web portal. The E-book can be read independently or in conjunction with the
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Here both buyer and suppliers have dominant strategy. It would have been beneficial for both of suppliers if they could coordinate but as in this case they can’t, safest way is to bid at lowest cost. From buyer’s perspective, he will make maximum profit if he goes with lowest bid so that even in case of crisis, if supplier decides not to fix, buyer would have enough scope to cover the fixing cost. So, there is very less probability that Buyer will award contract to higher bid and any of supplier
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chooses the output level. Suppose the retail price of a book is fixed at $50. The author receives $10 per copy, and the firm receives $40 per copy. The firm is interested in maximizing its own profits. Will the author be happy with the book company's output choice? Does the selected output maximize the joint profits (for both the author and company) from the book? Writer’s Perspective: Ideally the writer would choose a publisher for his book who is already established in the market. This implies that
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