Microeconomics Paper

1246 Words Jun 29th, 2005 5 Pages
CRAM Exclusive
Essay Sample
Analyzing the Monopolistic Competition of the Retail Industry Understanding the Terms Symbol = a code comprised of letters used as a unique identification of the stock 52 week High = the highest price reached during the last 52 weeks 52 week Low = the lowest price reached during the last 52 weeks Dividend = taxable payment declared by a company's board of directors & given to its shareholders out of the company's current/retained earnings Dividend Yield =

middle of document…

Each company is on a careful balance of price and cannot exceed the other company's prices beyond what the consumer sees as reasonable. Moreover, firms can enter and exit easily because there are no tariffs and resources are plentiful. This is the competitive side of monopolistic competition.
II. "…some degree of market power is achieved by firms producing differentiated products…"

However the retail firm is also monopolistic because of the added aspect that each company does have some degree of market power through their differentiation of products. One way firms differentiate themselves is through the consumer and the way they fashion their products. The consumer determines the success/failure of a company. A major problem firms face is how to accommodate to the changing preferences of the consumer. Guess was at one point similar to Levi's, a brand of jeans limited to the department store. However in 2002, Guess signed on Marciano, a prominent high-end European designer, and sales have boomed since. Now, Guess is a well-known, popular brand among teenagers and stocks have risen considerably within the last ten years.
Another huge component of differentiation is the marketing industry. Lately the retail industry has been using celebrity endorsement as an effective way to increase sales. Paris Hilton is the spokeswoman for Guess while many black, male celebrities are seen sporting Timberlands. Timberland and Guess also
CRAM Exclusive
Squire68129Spear

Related Documents

  • Essay on Microeconomics in a Nutshell

    In microeconomics this is translated into the notion of people maximizing their personal “utility,” or welfare. This process helps them to decide what they will supply and what they will demand. When hybrid corn first appeared in the United States, it was in experiment stations, not on ordinary farms. But over a period of decades it became the product of choice of hundreds of thousands of farmers. At the beginning of the process, those who adopted the new hybrids made handsome profits. By the

    Words: 2330 - Pages: 10
  • Essay about Microeconomics and the Laws of Supply and Demand

    have the supply, but yet the demand (interest) is low, causing the owner to lower the price in order to sell the remaining supply. The goal is to have your supply and demand goals met, while also maximizing your revenue. How do the concepts of microeconomics and macroeconomics help you understand the factors that affect shifts in supply and demand on the equilibrium price and quantity? The lessons taught by the simulation in regards to supply and demand teaches how

    Words: 798 - Pages: 4
  • Paper

    This paper should not resemble the first paper where you largely just discussed the episodes. Nor should it necessarily look like the midterm in that most of that was addressing the historical background.  Second, when organizing the paper it would best not to simply divide it into 2 parts with one section on Iraq and the other on the novel: One way to organize the paper is that after the introduction to provide a short paragraph broadly summarizing the cause and early course of the war and

    Words: 709 - Pages: 3
  • Eco 204 Entire Course Principles of Microeconomics Essay

    Fixed and Variable Costs ECO 204 Week 3 Quiz ECO 204 Week 4 DQ 1 Market Structures ECO 204 Week 4 DQ 2 Barriers to Entry ECO 204 Week 4 Quiz ECO 204 Week 5 DQ 1 Transfers ECO 204 Week 5 DQ 2 Tariffs and Quotas ECO 204 Week 5 Final Paper Market Structures You have been hired as a consultant by your local mayor to look at the various market structures. Your role is to provide analysis and answers to these important questions that will help the mayor understand the structures of

    Words: 780 - Pages: 4
  • Paper

    4761590). Available in the Strayer Library. 4. Read: Understanding Entrepreneurial Leadership in today’s Dynamic Markets http://usasbe.org/knowledge/proceedings/proceedingsDocs/USASBE2003proceedings-21.pdf. You are to write a four to five (4-5) page paper that answers the following: 1. Create a hybrid theory/philosophy which combines the common elements found in the thinking of Case, Kouzes, and Drucker. In your philosophy, be sure to include the new definition of entrepreneurial leadership presented

    Words: 628 - Pages: 3
  • Paper

    Conceptual Data Modeling,” of Essentials of Systems Analysis and Design. In class 4 Learning Team Instructions Service Request SR-kf-013 Paper (Preparation) Review the Service Request SR-kf-013 for Kudler Fine Foods. Begin creating a detailed outline for each section of the paper. Draft the first 4- to 6-page section of the Service Request SR-kf-013 Paper, due in Week Five. Include the following: • Statement of scope and goals: Specify which functions will be included in the project. Identify

    Words: 737 - Pages: 3
  • Paper

    their students. This idea can be used in the third section of my research paper, where I argue that these tests reduce schools to test-taking institutions. The example above has the correct format: the source information goes first, followed by a paragraph for the summary and another paragraph for the connection to research. Be sure you have at least five sources in total for this assignment. Before you turn in the paper, go to Review above and click on “Spelling & Grammar.” Not every error will

    Words: 590 - Pages: 3
  • Paper

    understand your problem/question? You should not assume this in your paper– you should provide some background and explanation of what you have studied. 1 • How will they respond to your solution/answer? You must try to anticipate questions or misunderstandings that they might have and provide enough explanation to avoid them. • In what forum will they encounter your report? You should be writing your technical research paper as if it might be published in a journal, professional society magazine

    Words: 3481 - Pages: 14
  • Paper

    ORDERS ORDER_ DATE ID 1001 7/7 CUST_ID CUST_ STATE NAME A004 George VA ITEM ITEM_ NAME DESCRIP 6531 T ape 7890 T able 7956 Pens QUANTITY PRICE 5 100.00 1 400.00 1 2.00 1002 7/8 A999 Ben PA 3456 Stove 1 300.00 1003 7/9 A201 Tom PA 4234 Paper 7956 Pens 15 234.00 10 20.00 STEP 2 First Normal Form prohibits repeating groups, such as, ITEM_NUM, ITEM_DESCRIP, and PRICE. To convert the table to First Normal Form: 1. Remove the repeating groups from the base table. 2. Create a new table with

    Words: 1451 - Pages: 6
  • Paper

    San Francisco Companies list. Pandora chief strategy officer Tim Westergren founded the company in 2000 and it filed for an IPO in 2011, with ticker symbol "P" at a price of $16/share, giving them a valuation of nearly $2.6 billion. In its papers filed with the Securities and Exchange Commission, Pandora reported a $16.8-million loss on $55.2 million in revenue for its fiscal year ended Jan. 31, 2010. From Feb. 1, 2010 through Oct. 31, Pandora narrowed its losses to $328,000 on $90.1 million

    Words: 1146 - Pages: 5