Question

In: Economics

What type of market structure was the product or service in when the differentiation occurred?

Write a short (2-3 page, double-spaced, typed) essay identifying and describing the conditions you observed for a business in Monopolistic Competition or a Differentiated Oligopoly who differentiates their product. Your paper should also provide brief market analysis including the state of the market before and after the differentiation, as well as the observed changes that resulted. Specifically, the following questions should be addressed:

What type of market structure was the product or service in when the differentiation occurred?

What is the differentiation? Describe specifically what the differentiation was and tell us what that means for rational business price and production decisions.

What was the observed change in the equilibrium price and quantity in the market, as well as the company?

Evaluate the result of the observed change from perspectives of efficiency and equity drawing upon price/cost margins for your explanation.

Evaluate whether the decision to differentiate the product was a good move for that business at that time.

Evaluate whether the decision to differentiate the product was a good economic decision for that business at that time. That is, were economic or normal profits realized as a result?

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Product or service: what product or service of Apple Inc ? Market and customer:Based on of...
Product or service: what product or service of Apple Inc ? Market and customer:Based on of Apple Inc, what is the estimated size of the market/customer base for your product/service market and what are the customer drivers (order winning and qualifying factors)? Process Type: what type of manufacturing or service process do you consider most appropriate in Apple Inc? Layout Type: what type of layout do you consider most appropriate in Apple Inc? Facility Location: what location do you consider...
(a) Explain the concepts of differentiation and integration. In what type of environmental uncertainty will differentiation...
(a) Explain the concepts of differentiation and integration. In what type of environmental uncertainty will differentiation and integration be greatest and least? Illustrate with examples. (b) How does the desire for legitimacy result in organizations becoming more similar over time? Illustrate each of the different types of isomorphism with a specific example that you know well.
In a perfectly competitive market where there is virtually no product differentiation, the focus on the...
In a perfectly competitive market where there is virtually no product differentiation, the focus on the firm would be reducing costs while delivering the same quality products. Reducing costs would start in the production stage and hopefully continue to every stage until the product is sold. Work efficiently and effectively during production is key. Reducing the cost of packaging can be a simple yet effective money saver. Building a reputable firm who makes quality products and is reliable is an...
What is product differentiation?  Give examples.  How does product differentiation influence buyer and supplier behaviors?  How...
What is product differentiation?  Give examples.  How does product differentiation influence buyer and supplier behaviors?  How does product differentiation influence your behavior?
Choose a large company and learn about its culture, structure, leadership, product or service, and market...
Choose a large company and learn about its culture, structure, leadership, product or service, and market potential. Imagine it is three years from now. The company has failed completely. The CEO has been fired, and the company has collapsed. Based on what you knew three years ago, what sequence of events led to this complete implosion? Provide a summary of why the company has failed – with some key junctures in the story. Premortem steps: 1- Imagine the worst: Start...
Consider a model of product differentiation and economies of scale. When such an economy is open...
Consider a model of product differentiation and economies of scale. When such an economy is open to free trade, what may be the effects on production, consumption, and export/import? How may its welfare change? (You do not need to give the details of the model. Focus on the intuition.) What are the sources of gain/loss? Under what conditions would the economy gain from free trade?
What type of interest rate risk will be occurred when Financial Institution holds liabilities with maturity...
What type of interest rate risk will be occurred when Financial Institution holds liabilities with maturity that are greater than the maturities of its assets? Explain what will be the impact on earnings when there are changes in the rate of interest. Justify your answer with support.
critically evaluate the implications of “Barriers to Entry” on product Innovation and differentiation and market prices...
critically evaluate the implications of “Barriers to Entry” on product Innovation and differentiation and market prices in the monopolistic market structure?
What type of market structure seems to best fit the market for physician-firms and why? Explain...
What type of market structure seems to best fit the market for physician-firms and why? Explain why in a few sentences.
One important consideration when looking for new products is the type of product for your market....
One important consideration when looking for new products is the type of product for your market. Convenience products are purchased quickly with little effort. They may be inexpensive, bought often, require little service or selling, and bought by habit. These are the things you see at your local 7-11 Store. Staples would be something that is bought often, routinely, and without much thought. Branding is used for many staples to make them easier to remember and find. You also have...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT