week-6

Content

Met

Partially Met

Not Met

Comments:

The student based their assignment on a new, realistic good or service from an industry they are working in or in which they are interested in working.

X

 Good choice of industry. However your choice of product within the industry should have been more focused. This would have made the analysis more effective. For instance, pick a product like BMW

The student identified the market structure of the industry (monopoly, oligopoly, competitive monopoly).

X

Market structure – The most important factor in the analysis is evaluation of the underlying market structure. The structure will form the foundation of your pricing and non-pricing strategies later in the paper

Yes, one could assume an oligopoly market structure – excellent.

Concept graphs: In this section you should also have supported your market structure assertion with an oligopoly market structure concept graph. You could have used the graph to discuss main characteristics of the market (table 10.1) as well as key cost and revenue functions interaction to determine profit maximization point and pricing for the oligopoly

The student determined the elasticity of demand for various quality ranges of the product based on textbook theory and judgments about the degree of luxury vs. necessity represented by various brands (e.g. a luxury car vs an economy car).

X

Here your analysis would have been better focused if you had chosen one vehicle like a BMW. You could then defend your position on whether or not BMW could be regarded as having an elastic or inelastic demand

The student determined how pricing relates to elasticity of demand for competing models.

X

As we discussed in class, demand elasticity affects the ability of the firm to increase prices. In this case, assuming the product is elastic, then the company must be very careful not to overprice the product else it would lose market share as you indicated.

The student explained how changes in the quantity supplied as a result of pricing decisions might affect the selected product or service’s marginal cost, marginal revenue, and market share as production volume rises. The student also discussed the possible reactions of other producers if one producer changes its pricing strategy.

X

This should be related to the underlying oligopoly market structure. Pricing decision does affect quantity supplied in an oligopoly. This is due to the kinked nature of the oligopoly demand curve. Please read the section on ‘Kinked Demand Theory’ in the attached reference

http://thismatter.com/economics/oligopoly-pricing-models.htm

In this case if one of the key competitors lowers the price of the product, others producing similar products could match its price resulting in loss for all. On the other hand, if one increases price the competition would maintain their pricing level - the cheating manufacturer would lose market share.

The student determined strategies that a company might use to develop product differentiation and market segmentation. The students also discuss the possible alternative non-pricing strategies that might be available and the possible alternative non-pricing strategies to increase barriers to entry.

X

This could be better. You could have mentioned the fact that high startup capital, brand recognition could provide serious barrier to market entry for say BMW.

For such a product, advertisement, great customer service etc. can be used for product differentiation

The student discussed how producers might alter the mix of fixed and variable costs to support their pricing strategy.

X

Economic concepts – Fair discussion.. Here you should also have discussed in detail key cost and revenue functions TC, TR, MR, MC etc. and how the interaction of these functions determines profit maximization point for an oligopoly market. You could use the market structure graph – above - showing cost and revenue interaction to demonstrate this.

The assignment is 1,400 words in length.

X

Total Available

Total Earned

5

3.5

Writing Guidelines

Met

Partially Met

Not Met

Comments:

The paper — including tables and graphs, headings, a title page, and a reference page — is consistent with APA formatting guidelines and meets course-level requirements.

X

Fair organization – paper was relatively easy to comprehend. Remember to use Introduction and Conclusion in your papers

The paper includes properly cited intellectual property using APA style in-text citations and a reference page.

X

Fair reference materials appropriately cited in line with APA standards. Try to use more relevant reference materials

The paper includes paragraph and sentence transitions that are logical and maintain flow throughout the paper.

X

Fair paragraph transition

The paper includes sentences that are complete, clear, and concise.

X

The paper follows proper rules of grammar and usage including spelling and punctuation.

X

Total Available

Total Earned

3

3

Assignment Total

#

8

6.5

Additional comments: This is a fair paper. You demonstrated fair knowledge of the concepts and their application. Please read my comments on each of the sections above very carefully.