...Differentiating Between Market Structures ECO/365 Differentiating Between Market Structures Kudler Fine Foods (KFF) commits to provide its customers with the finest selection of foods and wines available on the market. The owner’s vision is to be the premiere gourmet grocery store for discerning shoppers seeking the best meats, produce, cheeses, and wines (Apollo Group, Inc., 2011). To further her mission and vision, owner Kathy Kudler formed the business within the monopolistic competition market structure, developed a marketing overview, and created market surveys to evaluate the business’s competitiveness in the marketplace. The monopolistic competition market structure includes many firms selling slightly differentiated products. There is an easy entry into the market by new firms in the long run, and the firms are large enough to influence the total supply. There are also multiple dimensions of competition including distribution outlets, advertising, and product attributes (Colander, 2010). The marginal cost will be less than price at its profit-maximizing output level. According to the text, a monopolistic competitor cannot make long-run profit (Colander, 2010). The benefits of the monopolistic competition market structure are the ability to act independently to adapt to changing economic forces and customer tastes to differentiate KFF’s from its competitors. KFF exercises monopolistic behavior through product differentiation and marketing strategies...
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...ECO/365 Principles of Microeconomics Professor Alex Gialanella December 9, 2013 Good APA compliant cover In this paper I am going discuss the simulation I viewed in Week 2, which is about a city called Atlantis. It is a well maintained and has everything to offer its residents/tenants a decent number of parks, close to highways, clean litter free sidewalks and a low crime rate. The GoodLife Management is the property management firm that handles seven apartment complexes in the city of Atlantis. They have over 2,000 two-bedroom apartments and only a 28% vacancy rate, it’s very essential to use the supply and demand curve to determine the equilibrium in the market. It is also important to understand movements along the shift of the demand and the supply curves to determine how the equilibrium is established after the shift in curves. Supply and Demand are the most used words in the world of economics today, according to Colander , D. (2010). Supply and demand is a critical part of microeconomic and macroeconomics and it assist in determining the economy. This is an excellent, clear intro – good level setting and use of reference As for the principles of microeconomic shown in the simulation is supply and demand. In the simulation they wanted to lower the cost of rent in order to lower the percentage of vacant apartments to 15%. This would raise the revenue for the management firm, at one point the employment rate, population and housing demand...
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...Drew LeBlanc Eco/365 May 19, 2014 Week 4 Paper Facilitator: MICHAEL BLAKLEY The fitness industry is a billion dollar industry that only increases each year with the demand from its consumers. Everyone wants to live a healthier life style and in that regards need to find a way to do so. Regular gyms are becoming a thing of the past simply because it is the same routine over a long length of time that looses the interest of its clients very quickly. Being able to give the people what they want is always a hard thing to do, but what is even harder is keeping the people interested over the long run. Finding the right model is the biggest thing as a business you can do to optimize your success rate. Fitness will always way heavily on people because in the long run of life people want to live longer. Taking into account the busy lives of the normal person in the 21st century the time where you can take two hours at the gym is just no-existent. People want a fast and effective way to reach their fitness goals in a time frame that shows quick results. The more people have to do for themselves the less likely they will stick with it. Not everyone can afford personal training, but want that kind of attention to push them through the days they do not want to work out. In 2000 Greg Glassman took all of the data he possessed and developed a new revolutionary workout routine that was fast and effective (Crossfit, 2000). In a small garage in Southern California is where Crossfit was...
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...Team B’s Week 5 Assignment ECO/365 Automotive Industry Introduction The automotive industry is one of most important businesses in the World, creating a variety of vehicles for consumers worldwide. Management teams must learn to recognize how changes in other businesses can directly or indirectly affect the success of firms in the same industry or another type in domestic and global markets. The following paper analyzes the effects of changes in the automotive industry and how regulations held by the government control the financial and consumer aspects this industry maintains domestically and globally. A Company Emergence in Market Mergers and Globalization Functioning as an evolving market, automotive firms all the world find innovative ways to appease customers by offering the multitude of vehicles meeting consumer needs. New companies entering the automotive industry are competitive businesses exploring ways to expand professionally through vertical mergers. “The automotive industry is literally built on the concept of vertical integration – that is, one company owning both the manufacturing and as much of the supply chain that leads to the factory floor as possible,”(Gorzelany, 2014.) For instance, currently Tesla Motors in building a $5 million dollar “giga-factory” to power its electric vehicles with half of its investment coming from Panasonic, Tesla’s partner in this vertical merger. Panasonic is a successful battery...
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...General Motors is the world’s largest full line maker of automobiles. It currently has up to 8 different brands that include; GMC, Chevrolet and Buick to name a few. General Motors started out as two different companies started by Leland Olds, which started Oldsmobile, and William Durant, a Director of Buick Motor Company. Durant was the man behind the merger of Olds and Buick to form General Motors Corporation in 1903. He believed that one company making different models could be more competitive than making the same model of cars as different automobile companies. By 1911 the corporation had purchased all or most of 30 different companies in the auto industry. During the great depression, GM suffered greatly, but with new management and an aggressive new management style rebounded and was successful when World War II began. In preparation for the entry of the U.S into the war, GM retooled their factories to assist with the manufacturing of items needed during the war. During this time GM produced over $12.3 billion worth of material for the war effort. After the war, GM resumed manufacturing automobiles in their factories. In the late 1960s, GM began to hire more minorities for employment. This was made possible by new expansionist policies of Presidents Kennedy and Johnson. This allowed GM to prosper and expand into different business opportunities. Today GM has emerged from filing chapter 11 in 2009. GM came out of the chapter 11 with...
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...Current Market Conditions Competitive Analysis In 1903, American industrialist Henry Ford started a company that revolutionized how the world moved. With $28,000 in his pocket, Ford Motor Company was born. Today, it has grown to be the world’s third largest automaker, and the largest family-controlled company that has been in family control for over 110 years. Throughout the existence of Ford Motor Company, their success would not have been possible without knowing and understanding certain factors that affect not only the supply and demand, but also the equilibrium prices in the automobile industry. Every organization within the industry faces the same issues and opportunities that may affect competitiveness and long-term profitability, but Ford Motor Company continues to develop new and improved products to gain the advantage over their competitors. Ford Motor Corporation Henry Ford began the creation of Ford Motor Company by his fascination of gas-powered engines. In 1903 with the help of 11 investors Ford Motor Company was incorporated through the New York Stock Exchange and its home office originated in Dearborn, Michigan. This giant automotive manufacturer created the first Model T. in 1908 that became to be one of the largest selling vehicles in history. Ford Motor Company later began to build vehicles for the government to support in World War II. This made the automotive manufacturer a very vital business to the U.S. economy and now one of the largest in the world...
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...Differentiating Between Market Structures in Kudler Kudler Fine Foods (KFF) is a specialty grocery store that is designed for the gourmet chef that lives inside everyone. They provide a wide selection of gourmet items that aren’t available anywhere else in their geographical area. They opened their first store in 1988 in La Jolla, CA and since then have opened two more also in California. KFF is dominating the gourmet grocery store market by offering one on one service to their customers, providing the freshest produce, meat, and cheeses, and offering a wide selection of wines from across the country (University of Phoenix, 2013). Kathy Kudler, the founder, wants to expand her business in the next 5-10 years. Our group has been hired by her to perform a market analysis, review competitive strategies, and make recommendations on how to maximize profits. Kudler Fine Foods has no direct competition therefor they don’t have the need to compete in their market. This doesn’t mean that they do not have strategies in place to ensure that customers don’t stray to their indirect competitors. KFF is dedicated to expanding their services, enhancing the efficiency of its operations and boosting the consumer purchase cycle as a means to raising loyalty and profitability (University of Phoenix, 2013). Kudler Fine Foods marketing studies have provided our team with the opportunity to see their strengths and weaknesses. Some strengths are merchandise display, décor, and convenience of store...
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...Article Review Brandi Augustine Law 421 December 4, 2012 Stanley Santire The article discusses the policy of Italy towards intellectual property (IP) and e-commerce. Many foreign companies established licensing agreements with Italian companies. License often extends to export-quality and domestic goods in internationally competitive sectors. Businesses are advised to use contracts in regulating all relationships that delve on IP rights. Special IP courts have been created to resolve possible violations including piracy and counterfeiting. Italian law recognizes and protects all standard classes of intellectual property, including patents (industrial inventions, utility models, designs and models, plant varieties, semiconductor topographies), trademarks and service marks, and copyrights. The IP codes definition of intellectual property covers designations of origin and geographical indications, which reflect the definitions, set by the European Union. Registration does not provide protection of corporate confidential information, but the code states that using or revealing confidential corporate information to third parties is illegal. Italy has progressively strengthened penalties for counterfeiting in recent years. Law 99/2009 of August 3rd 2009 increased the fines and set prison terms for counterfeiting. Trademark counterfeiting became punishable with fines of and prison sentences of three months to six years. Earlier legislation only allowed confiscation of the counterfeit...
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...Article Anaysis In this paper we will discuss patterns of milk consumption and analyze the basis of trends in consumption patterns. We are going to consider the utility derived from the product, will describe what has happened to change the demand for that product, we are going to describe what has happened to change the demand for milk and its market equilibrium prices and assuming that the supply remains thereof. Also we will describe what has happened to change the supply of milk and equilibrium prices assuming demand remains the same. Finally we discuss if product demand is elastic or inelastic. The dairy industry is the main source of agricultural income in Puerto Rico. During the fiscal year of 2011, they generated more than $235 million, representing 29.8% of the gross agricultural income of the island. The industry has three fresh milk processing plants, one operated by Tres Monjitas and Suiza Dairy, one in the metropolitan area and the other in Aguadilla ("Indulac Con La Mira En Europa Y Latinoamérica", 2013). These plants collect raw milk produced and marketed the pasteurized and homogenized in thousands of outlets across the island. The surplus milk is not processed by these three plants is used by the Dairy Industry of Puerto Rico, Inc. (INDULAC), which processes milk surplus UTH milk and other dairy products. The dairy industry is the main source of employment in agriculture and is estimated to generate around 25,000 jobs. From the October 23, 2011 has unleashed...
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...Elasticity Paper Substitutes can be defined as goods that can be used in place of one another. When demand for product A causes a decline for product B, this is called substitutes (Colander, 2013). An individual can buy either one of them. Substitutes are ever-present in the market and are the stable of the free markets’ completion. Complements are goods that are used in conjunction with other goods (Colander, 2013). An example would be if an individual buys a printer, and they are aware that at some point in the future they will have to replace the ink cartridge. Additionally, they only buy the ink when they need to refill the printer. These products and other similarly linked products are called complementary; demand for one will naturally increase the demand for the other (Tasos, 2014). In today’s world of constant change and development in technology there is and always will be an abundance of substitutes and complements. One article found online touches upon how the iPod brand has many complements to their products such as cases, covers and iPod holders, etc. However, there are plenty of substitutes out there that people may purchase which are very similar. If a consumer was looking to purchase an iPad, they might substitute that purchase with a competing product such as a Samsung tablet. Substitutes and complements both affect supply and demand in terms of microeconomics (Creative Business: Substitutes and Complements, 2014). The reason some...
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...This paper is intended to summarize the finding from the assignment on the student website and answer the questions proposed in the syllabus. The simulation takes place in a fictional town called Atlantis, you are assigned the position of property manager for properties within. The assignment is to understand the concept of supply and demand and use the information in the assignment to answer the questions. Goodlife is the property management group that manages the properties within Atlantis and for whom you work for, you are assigned the task of turning over the vacancy rate in the property by lowering the rent of each apartment and therefore retaining more tenants while gaining new ones through marketing and great rates. Through various simulations you are asked to choose whether to raise the rent or lower in order to maintain a healthy profit for the company and to understand the way that demand will affect demand. In this paper, I will attempt to identify two microeconomic and two macroeconomic concepts from the simulation and why they are each. The paper will also explain the shift in the supply and demand curve, how these happen, and what causes each. Macroeconomic is the study of the entire economy as a whole. In the fourth and seventh scenario show examples of each. Microeconomics is the study of the economy through the study of performance and decision making and not individual markets. Supply and demand is a concept that we become familiar with at a very young age...
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...Joint Ventures occur when two businesses arrange a short term contract in which they use each other’s resources or talents to accomplish a business goal. The contract consists of the responsibility of each company, and how they are going to divide profits or losses. Joint ventures are a lot like partnerships, but differ because partnerships are long term, whereas, joint ventures are usually single transaction contracts (Legal-dictionary, 2015). One of the main purpose of a joint venture is to share company strategies to make any risk minimal and to boast the popularity on the companies in the market. Consider a drilling and mining company. Their business might not have the proper funds to perform a huge mining operation because the price to do so is expensive. A joint venture with another company would be beneficial at this point in order to share risk and profit. Horizontal, vertical, or conglomerate mergers differ from joint ventures in many ways. The legal structure of Joint ventures differs from any of the mergers because even though two companies are working together, both companies still function as separate businesses. A firm is formed for the association of the two businesses, but the original businesses operate separately on their own (smallbusiness, 2015). If companies merge both businesses stop existing, and new business is created from the combination of two. Mergers tend to be more of permit contract because difficulty of detaching the merge. Joint ventures are...
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...What is an externality? Provide at least three examples. How does one of the examples you provided affect the market outcome? What is the role of government in addressing the implications of an externality you provided as an example? Is it possible that a government’s solution to a market failure would worsen the failure? Explain your answer. Externality is defined as an effect of a decision on a third party not taken into account by the decision maker. There are two types of externalities being positive and negative. Second hand smoke would be a negative externality. The smoker does not take into account the smoke emitted from their cigarette. Education would be considered a positive externality. When an individual is educated, their employer benefits from your expertise on the matter that was studied. It also helps to employ teachers with jobs in order to educate us. Innovation is also a positive externality. The effects of innovation helps businesses become more efficient, in respects to technological innovation. Innovation affects market outcome. With Apple's determination of constant innovation, consumers are chomping at the bit for the next generation "iProduct." Each product surpasses the previous with updated features. The government has no role in addressing the sale of "iProducts," and their externalities. But if there were a market failure for these products, the government could intervene on their behalf. The government could implement a tax incentive program...
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...Book Festival Robert Thomas, Bobby Patel, Elizabeth Luckett & Alexis Impastato Comm/215 John Cantlon April 6, 2015 The gift of reading is the most precious gift anyone can bestow upon a child. Reading opens a child’s imagination, vocabulary and opportunities. Books can provide a new world, an escape and a solid educational foundation. Unfortunately, many children grow up without age appropriate books in their households. A great answer to this tragedy is to hold a book festival, and what better place than Chicago? Chicago is home to many single parent households that do not have disposable income to spend on children’s reading material. In fact, there are approximately 617,000 children living in Chicago, and 59 percent come from low-income families (Dinan et al., 2007). Statistically speaking, children from single- parent or low-income homes have fewer opportunities to access books and the wonderful world of reading. These children will grow up without a fun and educational past-time unless something is done. An astounding 61 percent of low-income households have absolutely no books for their children! This statistic correlates with lower scores on achievement tests than those from children who come from more financially stable households (Allington & McGill- Franzen, 2009). Alling & McGill- Franzen (2009) go onto say, “Children’s access to printed materials is the critical variable affecting reading acquisition.” A child’s academic achievement...
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...Supply and Demand ECO365 July 23, 2013 Supply and Demand Microeconomics vs. Macroeconomics The supply and demand simulation shows different aspects of economic structures. Although mostly focused on microeconomics, the simulation does show a small role of macroeconomics. The principles of microeconomics would apply to drop in rent prices to increase the supply being demanded. Another microeconomic principle shown in the simulation is the rise in demand when the cost of rent is lowered. Macroeconomics principles came into play when the rise in demand for apartment was a direct product of the establishment of a new company in town. Same principles of microeconomics apply to an excess supply created by a price ceiling enforced by the government. Supply and Demand Shifts A shift in the demand curve was created when the new company brought an increase in population to Atlantis. A greater amount of people created a greater demand for the apartments. Equilibrium is reached in the demand shift by raising the price of rent to decrease demand. A supply shift was created when 400 apartments were converted into condominiums, which in turn caused a drop in supply. The equilibrium would be fixed by raising the cost to lower the demand because of a decrease in supply. Real World Application With the nutritional corporations expanding and health awareness on the rise prices of nutritional supplements are rising to meet the demand. Especially in local areas, there aren’t too many...
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