Analysis of market structure and relating pricing strategies

Assignment Help Business Economics
Reference no: EM13147237 , Length: 2500 Words

Pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as far as the customer can bear. The pricing strategies for a producer operating in a perfect competition structure are also fairly intuitive. They are price takers, and hence price is set at the marginal cost of the product. This is due to the fact that there are many firms offering nearly identical products. However, there is optimal pricing for the market structures offering differentiated products with many competitors (oligopoly) or a few producers (monopolistic competition). These are much more complex and involved. It has been stated that differentiation in products that creates differences in customer valuation is the most prevalent type of competition. In such markets pricing strategies may include the three C's of cost, competition, and customer.

Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific company by identifying its market structure. 

 Your paper should be between 2,500 and 3,000 words, in APA Format and structured as follows:

1. Cover page with a running head
2. Abstract
3. Introduction to market structures

3.1. Perfect competition
3.2. Monopolistic Competition

3.3. Oligopoly 

3.4. Monopoly

4. Pricing strategies as they are specifically related to each of the above market structures.
5. Case Study
6. Conclusion
7. References

Verified Expert

Reference no: EM13147237

Compare economic performance in oligopolistic market

Compare economic performance in an oligopolistic market with that in a purely competitive one. Is oligoploy the best market structure for rapid technological development? Why

Subsequent declaration of war

Why did German leaders support Austria-Hungary's ultimatum to Serbia and its subsequent declaration of war in the wake of the assassination of Archduke Francis Ferdinand in Ju

Which the entire stock will be mined in one season

Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is const

Revenue of seignorage if monetary base triples every period

Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there

Enhance the career of a practitioner in the nutrition field

How can being a member of a nutrition organization/association that promotes the organic food movement, on a professional level enhance the career of a practitioner in the nut

Price quotes and pricing decisions applied problems

Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Alba and Gavigan set up their site so families ca

Most unemployment is structural unemployment

Higher levels of education are associated with higher levels of structural unemployment. During a recession, cyclical unemployment rises but structural unemployment falls. His

Economy is recovering from the recession

Senator Snodgrass says, “You economists say the economy is recovering from the recession but corporations are sitting on piles of cash and the unemployment rate is not declini


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd