student response (1)

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Economics

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Nov 24, 2024

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QUESTION 1 RESPONSE 1 The concepts of price discrimination have been described well using the example. Price discrimination can be divided into three degrees, the first, second and third, all having different meanings. I agree that the more significant the variation in group elasticity, there is an additional profit in devising a price discrimination scheme. Indirect price discrimination basically is about the number of purchases and discounts to the consumers. Does this strategy work for every business? Nash equilibrium is a stable state of a system involving the interaction of different participants, in which no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged. Is there a likelihood for two potential rivals to collude if they see themselves as playing a repeated game? Response on discussion topic 1 I agree that the demand for chain stores can be accommodated because they buy goods in bulk, this means they will attract larger profits. However, is it possible to do it for both specialty stores and chain stores as stated in this post? The only way to accommodate the chains legally without losing profits from the other specialty store is when the seller is not capable of preventing arbitrage between a given set of groups. It is possible to design products and services based on the customer’s behavior of purchasing, to appeal the given groups with different demand elasticity. QUESTION 1 RESPONSE 2 Direct price discrimination has been described well. I am interested in the point that it can prevent arbitrage and the selling of goods the-price goods to a higher value group. Individual demand curves encompass the demand for a good or a service by an individual (or a household) .

Individual demand comes from the interaction of an individual's desires with the quantities of goods and services that he or she is able to afford. At which point do the demand and supply curves meet? Response on discussion topic 1 Robinson-Patman Act of 1936, is a U.S. law that was enacted in 1936 to protect small businesses from being driven out of the marketplace by prohibiting discrimination in pricing, promotional allowances, and advertising by large franchised companies . In this particular situation, the manufacturer has a problem identifying the most profitable customer and this should be a legal step. Does the act provide measures that protect the manufacturer? It is way profitable to give chain supermarkets discounted prices because of their bulky ordering which evidently specialty store does not offer. How does the act allow the manufacturer to remain competitive in the industry? QUESTION 3 RESPONSE 1 The difference in products makes it possible to segment each market. A good positioning strategy makes a product unique and marketable. It describes a certain product in the market in relation to other products, and what would make customers choose yours over the other products. I agree that a firm can choose to change its positioning depending on the market response. However, how is it possible for big businesses and what effect will it have on the industry? The positioning statement is well framed, how is it different from other businesses? QUESTION 3 RESPONSE 2 A decent positioning creates a distinctive product with a distinct benefit, starting out well. The market is full of multiple things and making a product outstanding creates a good impression to

the customers and enables it to ride through challenges. It is sometimes necessary for a firm to change its positioning to solve the problems that arise across the business depending on the market. At what point or time will one know that it is time for the firm to change its positioning? The positioning statement covers most of the requirements, what are the business core values?

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