The Factors That Can Change the Situation in the Prices Charged by Companies Essay

There are some companies that operate in the low calories, microwavable food industry hence bringing about competition. In essence, there are many industry players. Regardless of the intensive competition, there are always tow leading companies in the industry that comprise healthy choice and lean cuisine. Due to their operation, the two firms hold a significant market share in the industry. These companies compete by coming up with the differentiated products from each other. Due to this, they make the companies enjoy monopoly that is partial therefore acting like the monopoly. This is what makes the firms have some pricing power over what they produce. In this case, there is a power of monopoly given that the products are differentiated thus every independent company can fix a price that they wish on all the products they produce depending on the level of profits they wish to attain. In so doing, it increases the margins of profit since the prices are more than the competitive market prices (Nicholson Snyder, 2012). The variation between the average revenue and the average cost is in most cases bigger. Further, these companies are faced with the inelastic price demand for their products meaning that the companies are in the position to come up with good percentage earnings in terms of cost margin of the price.Form the initial assignment 1, the demand equationDQ-5200-42P 20Px 5.21 0.20A 0.25M.The preceding results for the firm were computedThe price elasticity of demand was 1.1898The elasticity of demand for advertisement 0.1133The gross elasticity of demand 0.06799Income elasticity of demand 1.6204Own price elasticity of demand in this matter is more than one which is an indicator that the demand is elastic and rise in price will impact demand adversely. A reduction in the prices leads to an increase in the level of demand (McGuigan, Moyer Harris, 2014). Thus, the corporations will set determine the prices based on the desired level of profits...

Comments

Post a Comment

Popular posts from this blog

Character Analysis of Basil Hallward in The Picture of Dorian Gray, a Novel by Oscar Wilde Essay

The main character in The Picture of Dorian Gray, Dorian, is a man too easily influenced by his surroundings. He is quoted as saying, Basil Hallward is what I think I am Lord Henry is what the world thinks me Dorian is what I would like to bein other ages, perhaps (Wilde). This comparison falls in line with the moral of the story because Dorian is stuck with eternal youth and beauty even though he has a wicked soul. This causes different views of him by people who observe his daily life. Dorian is a sponge throughout the novel that absorbs everything and allows it to shape his personality, morals, and actions. Dorian Gray takes influence from Lord Henry, Basil Hallward, and the culture of society during which the novel was written. Lord Henry is the epitome of a wealthy, hedonistic gentleman seeking only pleasure, with little regard to cost or consequence. Lord Henry Wotton outwardly propounds hedonism, but it is his extreme egotism that drives him to manipulate both Basil Hallward a
Read more

An Analysis of the Character of Chichikov in the Poem, Dead Souls by Nikolai Gogol Essay

Dead Souls takes place in the Russia of the late 1800s, where, unlike in America, one must be born into a prosperous family in order to have opportunities. The main character, Chichikov, is clever enough to develop a scheme in which he can rise from being a petty clerk to a respected landowner. In order to do this, Chichikov moves into a new town, pretending to already be a landowner, and begins a quest to buy the names of dead serfs who have not yet been officially reported dead. Each person that Chichkov presents this offer to has a different reaction, starting with the shy and introverted Manilov. Though he does not understand Chichikov's need for the names of these dead serfs, Manilov is a character that is so desperate for company that it does not take any effort to trick him into selling his dead souls cheaply. However, as Chichikov continues his journey, he starts to deal with more clever landowners who become suspicious of his scheme. Chichikov finds that the townsmen know
Read more

A Literary Analysis of the Third Twin by Ken Follett Essay

The Third TwinThe Third Twin by Ken Follett is a type of mystery book. It makes you look at different aspects of the story. When you think you know whats happening it is not always what you think.Dr. Jeannie Ferrami, a scientist funded by a university who is doing a study on twins is one of the main characters in the story. Jeannie Ferrami is tall with long brown hair and is also very athletic. Steve Logan a student at another college is also a very important character in the story. Berrington Jones the head of the college funds Dr. Jeannie Ferrami until Jeannie discovers something Berrington didnt want her to know. Ricky Phillips Berringtons son is a twin just and he plays a small part but with a big impact on the story. Lisa Miller who is Jeannies best friend comes early into the story playing a very dramatic role, another small character is Dennis Pinker one of the twins in the story who is a murderer and is also being studied He is one of Steve Logans twin brothers.Lisa Miller and
Read more