Microeconomics Paper

1246 Words Jun 1st, 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

  • Microeconomics Essays

    Krista Hooten American Intercontinental University Unit 2 Individual Project ECON 220 – Microeconomics January 19, 2013 Abstract Businesses are available to offer its services and products to the consumer. In order to have a profitable business, the business must maintain close awareness of the cost and demand of the product and adjust to the rise or fall in price. Price Elasticity of Demand: Paint In our scenario I am a painter. In my business we have to be very conscious of how much

    Words: 800 - Pages: 4
  • Microeconomics Essay

    RE 47. Microeconomics approaches the study of economics from the viewpoint of: a. | inflation, unemployment, and economic growth. | b. | the federal government. | c. | individual economic units, such as consumers, firms, and units of government. | d. | the economy as a whole. | ANS: C PTS: 1 DIF: Easy REF: Full: 6 | Mic: 6 TOP: Microeconomics TYP: RE 48. The basic difference between macroeconomics and microeconomics is: a. | microeconomics concentrates on

    Words: 9125 - Pages: 37
  • Essay about Usda Microeconomics

    change along the demand curve, because it is rare for the demand curve to be linear. If so, than the price elasticity would remain unchanged. --------------------- References: Krugman, P. & Wells, R (2012) Microeconomics, New York, NY. Worth Publishers |Microeconomics: Unit 4 Assignment: CS and PS; Elasticity | |Content (13 points)

    Words: 1171 - Pages: 5
  • Essay on Microeconomics in a Nutshell

    is between “macroeconomics” and “microeconomics.” The motivating force for the change came from the macro side, with modern macroeconomics being far more explicit than old-fashioned monetary theory about fluctuations in income and employment (as well as the price level). In contrast, no revolution separates today’s microeconomics from old-fashioned price theory; one evolved from the other naturally and without significant controversy. The strength of microeconomics comes from the simplicity of its

    Words: 2330 - Pages: 10
  • Essay on Microeconomic Concepts

     Title Page Microeconomic Concepts Charlie Edwards Contents Page Page Title page 1 Contents page 2 1.0 Summary 3 2.0 Introduction 3 3.0 Over view of Qantas group 3 4.0 Products and Services 4 4.1 Economy and Economy plus 4 4.2 Business Class 5 4.3 First 5 5.0 Internal and external factors 5 5.1 Internal factors 6

    Words: 1260 - Pages: 5
  • Microeconomics Tax Report Essay

    ECON111 Microeconomics Group Presentation Name | Student ID | Signature | | | | | | | | | | | | | Introduction   For more than a year, the Rudd government has been had a contentious issue with the process of introducing an Emission Trading Scheme (ETS). The Carbon Pollution Reduction Scheme (CPRS) was devised to reduce greenhouse gases and Australia’s carbon pollution (DCC 2009). However, the bills were passed by the House of Representatives but have been continually

    Words: 1436 - Pages: 6
  • Competitive Analysis Microeconomic 365 Essay

    Garcia, Alexander Gamez, Andrew Sullivan, Doye Barksdale, Edward Tyson ECO/365 July 31, 2014 Mr. Jerry Peck Current Market Conditions Competitive Analysis The thesis of this paper is that the current market conditions are very competitive for every type of field industry in cooperate America today. In this paper, I will discuss Ford’s new product called Siesta. Our team will help Ford Auto Maker to determine the release of the new electric two door car by analyzing Ford’s primary competitor

    Words: 1085 - Pages: 5
  • Microeconomics Ch 12-15 Essay

    ECO 213 MICROECONOMICS (100 points) NAME: Chapters 12-15: Homework DUE: April 16, 2012 1. A regulated natural monopoly is more likely to spend more money on employee healthcare under which of the following types of regulation? A. Price regulation. B. Profit regulation. C. Output regulation. D. Social regulation. 2. Hiring over 260,000 U.S. federal workers to oversee and operate regulatory agencies involves: A. Zero costs since the market outcomes will be improved. B. Government

    Words: 1277 - Pages: 6
  • Microeconomics Versus Macroeconomics Bus610 Essay

    Microeconomics versus Macroeconomics Economics for the Global Manager BUS610-1101C-02 Abstract I want to thank everyone for joining me today to review the effects of microeconomics and macroeconomics in conjunction with the healthcare industry. We will start with a brief introduction of what we will review, and then briefly hit on the subject matter in a bit more detail. “The world’s largest and most diverse economy currently faces the most severe economic challenges in a generation or

    Words: 1615 - Pages: 7
  • Essay about Microeconomics and the Laws of Supply and Demand

    Microeconomics and the Laws of Supply and Demand ECO/365 October 15, 2014 University of Phoenix Microeconomics and the Laws of Supply and Demand This assignment calls for the students to complete the Supply and Demand web simulation. The simulation is about a property management firm called Goodlife Management, who owns apartment complexes in the city of Atlantis. The simulation provides a number of different scenarios both covering information that we learned about microeconomics and macroeconomics

    Words: 798 - Pages: 4