Economics: Business Proposal Revision

Important information

Included?

Comments

Identification of market structure

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Yes No

Market structure stated as Oligopoly. It is characterized as having a few firms in the market.

Assumptions regarding market structure and elasticity

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Yes No

To what degree do you agree or disagree with the items below?

SD=Strongly Disagree

D=Disagree

N=Neutral

A=Agree

SA=Strongly Agree

Justification included?

Comments

Chosen method to increase revenue

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SD D N A SA

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Yes No

Mr. Kern suggested that he would lower his margin rate to match those of his competitor. This is a suggested maximize on profit as depicted in the video on market structures.

Chosen methods to determine profit-maximizing quantity

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SD D N A SA

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Yes No

To determine profit, Mr. Kern has decided to take advantage of the premium pricing for the first 2 years of introducing the new products.

Use of concepts of marginal cost and marginal revenue to maximize profit

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SD D N A SA

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Yes No

Mr. Kern provided in great deal the justification in marginal cost and revenue.

Suggested mix of pricing and nonpricing strategies

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SD D N A SA

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Yes No

I have my opinion on the non-pricing strategy. I was under the impression that non-pricing strategies were geared towards how this particular product would be advertised. I know understand that part of a non-pricing strategy is producing a product that is tough for rivals to emulate. This product has will have a foldable battery that will have a patent.

Selected barrier to entry

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SD D N A SA

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Yes No

Although Mr. Kern did not state this as a specific barrier to entry, he did mention that he would patent his foldable battery. A patent is a way to protect the inventor from rivals.

Chosen methods to increase product differentiation

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SD D N A SA

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Yes No

Mr. Kern’s way of product differentiation is through the use of his products foldable battery. The paper could’ve expound more on its features and benefits.

Chosen methods to minimize costs for the product

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SD D N A SA

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Yes No

I did not notice a plan to minimize the cost of producing the foldable batter in the smart phone.