marketing
1. Identify the type of competition (pure competition, monopolistic, oligopolistic, pure monopoy) that is exemplified in each of the following situations: (20 marks, 5 marks each)
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Situation |
Competition type |
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1.The US postal service is provided only by the government. |
A. |
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2. In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. |
B. |
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3.Many sellers trade over a range of prices in the automobile industry by differentiating their offers to many buyers. |
C. |
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4. The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. |
D. |
2. Classify each of the following into fixed or variable costs. (50 marks, 5 marks each)
(Interest, Rent, Delivery, Wages of part-time staff, Raw materials, Executive salaries, Insurance, Commission on sales, Package, Advertising)
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Fixed costs |
Variable costs |
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2
3. Explain the following pricing strategies and provide an example of each. (30 marks)
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Pricing Strategy |
Explanation |
Examples |
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Everyday low pricing |
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High-low pricing |
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Value-added pricing |
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3