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Your consulting firm just granted an exclusive contract for Vanda Laye Corporate. You now must decide your pricing policy. The firm will encounter no fixed costs and all revenue is after taxes. As your firm has been granted an exclusive contract your pricing and output decision will be those of a monopolist. Analyze what a monopoly is and the effects it could have on the consulting firm. Evaluate if any anti trust policies need to be put into place. How will your pricing policy be justified? Explain the implication of increasing the price you'll charge Vanda Laye versus what is was previously charged.
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The report is about monopolistic situation analysis. The consumer protective Antitrust laws, implications of the monopoly situation to the company are discussed. Possible pricing strategy is also discussed in the report. References are provided as well.
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