Final Proposal

Important information

Included?

Comments

Identification of market structure

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Yes No

The market structure is debatable between monopolistic and oligopoly. Since the number of producers are very small in number, and the structure should be oligopoly.

Assumptions regarding market structure and elasticity

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Yes No

Elasticity is not discussed explicitly, although some reference on increasing demand by reducing the availability of drumsticks.

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

To increase revenue in this business, the reducing price to sell more. This is not included.

Chosen methods to determine profit-maximizing quantity

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SD D N A SA

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Yes No

Although shortfall of supply level increased the priced, profitability is not discussed.

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

The use of marginal cost and marginal revenue are not discussed in the paper.

Suggested mix of pricing and nonpricing strategies

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SD D N A SA

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Yes No

Adding a new facility to produce more drumsticks is one way to increase the revenue. But product differentiation is necessary in this market, although they do have signed sticks by well-known artists are already implemented.

Selected barrier to entry

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SD D N A SA

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Yes No

The paper does not discuss how it created barrier for others to enter the market. One good argument could be, locking up new artists under their contract to sell signed drumsticks will discourage new producers to enter this market.

Chosen methods to increase product differentiation

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SD D N A SA

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Yes No

Product quality and signed drumsticks are cited.

Chosen methods to minimize costs for the product

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SD D N A SA

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Yes No

Creating another factory location in Georgia could reduce the prices for producing and distributing in USA. But this point was not discussed.