Questions

Discussion Question Instructions (3 Questions)

(Discussion Week 4)

Context

For this week's discussion, the focus will be on examining Porter's Five Forces as a tool for looking at the pressures on profits.

Specifically, how does Porter's analysis examine the stress on profits from all directions and all dimensions of a firm's environment? You will be applying this tool by specifically looking at the market structure in which a firm competes. You will need to be able to distinguish an oligopoly from a monopolistic competitive market structure.

Also see the help provided in the discussion preparation.

Instructions

In your discussion post, address the following:

· Choose one of the following groups and use Porter's Five Forces to analyze the pressures on profits for your chosen group's firms.

1. Group 1: Firms in the retail sector (e.g., Amazon, Walmart, Target, Kohl's, Sears, Macy's).

1. Group 2: Firms in the wireless services industry (e.g., Verizon, AT&T, Sprint/T-Mobile; focus on telecommunication services, not on the sale of phones).

1. For each group determine and explain whether the group is monopolistic competitive or an oligopoly. Be specific in which market structures the firms operate.

1. Choose  one of the firms from one group.

1. Using Porter's analysis, what are the threats to profitability faced by the firm? This would be a great time to expand your research skills by checking out the firm's investor relations page or by using some of the material from the vast collection of business databases at the Strayer Library.

(Discussion Week 5)

Context

The idea that transactions in a marketplace work like an invisible hand is to some extent the idea that when a person chooses to buy an item at a given price, they are happy with the deal. There is no coercion. If the person really does not like the deal, they simply walk away.

This week's discussion will give you an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario.

Also see the help provided in the discussion preparation.

Instructions

For this discussion, use the following hypothetical scenario as the basis for your response:

· Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal.

Address the following in your discussion post:

· Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship.

. What degree is this type of price discrimination?

. How will the plan increase revenue?

. Why will both groups of customers be satisfied with the deal?

. Why is this a legal form of pricing?

· Use evidence from your textbook or other reputable sources, including any help in the discussion preparation, to support your case to your business partner.

(Discussion Week 6)

Context

In our  Managerial Economics textbook, we consider a sequential-move game in which an entrant is considering entering an industry in competition with an incumbent firm (see Figure 15-1). There are several possibilities of how this sequential game will be played. We want to use the Froeb rule of "look ahead and reason back."

Also see the help provided in the discussion preparation.

Instructions

For your discussion post, use Figure 15-1 from the textbook as your starting point to address the following:

· Play and analyze the game. Can, and how does, the entrant succeed? Is the incumbent ever in control of this game? What is the Nash equilibrium?

. You may wish to review the old game known as Duopoly, as well as Antoine-Augustin Cournot, to help inform your post.