MANAGERIAL ECONOMICS AND GLOBALIZATIONS

ECO: MANAGERIAL ECONOMICS AND GLOBALIZATIONS

DISCUSSION 1 (A & B)

"Monopolies" Please respond to the following:

A)

E-activity: Use the Internet to research a firm that operates as a

monopoly. Identify its price-setting strategies.

Imagine this company acting as a monopoly was to have a new competitor arrive in

the marketplace. Assess how the monopoly would likely change its pricing strategy

to compensate for the new competition.

B)

From the e-Activity:

Speculate how the monopolist could be more efficient in the long-run considering

new competition has entered the marketplace.

DISCUSION 2 (A & B)

"Oligopoly" Please respond to the following:
A)
E-Activity: Use the Internet to research the automotive industry, which

acts as an oligopoly. Collect data for a competitive analysis for two or three

companies in this oligopolistic industry.

Assess the marketing and pricing strategies, for example rebates, to determine the

goal(s) of the marketing and pricing strategies for one of the companies you

researched. Make one recommendation for changes that the company should make

to better maximize profits.
B)
The Internet has made shopping for airline tickets efficient for the consumer.

As a result, the industry overall is price sensitive. Suggest how the airlines can

maximize profits while avoiding price wars.