Economics Graduate Level- Business Proposal 2

Important information

Included?

Comments

Identification of market structure

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You did a great job identifying Oligopolitic market structure.

Assumptions regarding market structure and elasticity

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The assumptions underlying oligopoly' market structure and elasticity clearly shown by the XYZ tea production market example.

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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I like one of the methods you choose to increase revenue. It is an introduction of the membership. Membership will help with increasing the frequency of transactions per customer.

Chosen methods to determine profit-maximizing quantity

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You did a good job explaining one of the methods to determine profit-maximizing quantity. “The profit maximization quantity can be achieved when marginal revenue equals marginal costs.”

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

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Again, you did a great job showing your understanding the use of concepts of marginal cost and marginal revenue to maximize profit.

Suggested mix of pricing and nonpricing strategies

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You did an excellent job regarding pricing decisions. The pricing strategy such as membership will encourage customer to continue buying the product. Also non-pricing strategies such as extended warranties, advertising will improve the market performance.

Selected barrier to entry

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Your choice of barriers to entry such as “the exclusive resource ownership, high start-up costs,” and other show clear picture of how difficult for firms to attain and retain market control in oligopolistic market.

Chosen methods to increase product differentiation

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You need to include more information in relation to methods to increase product differentiation. You did a great job describing product differentiation in general terms but did not go into details in relation to the tea business in particular.

Chosen methods to minimize costs for the product

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I think you need to be more specific describing chosen methods to minimize costs for the product.