• Price Discrimination Marginal Demand Revenue
    2,402 words
    Define, discuss, and account for the existence of price discrimination. Compare and exemplify the first, second, and third degrees of such discrimination. Overview Price discrimination is the practice of setting different pricing formulas in different virtual markets, while still maintaining the same product throughout. The prices are based upon the price elasticity of demand in each given market. In more practical terms, that means that during Ladies Night at M. P. OReilly's, it costs more for...
  • Competition And Economic Efficiency
    649 words
    Efficiency: refers to the relationship between the value of the benefit relative to the costs incurred to obtain the benefit. An activity is efficient if the total benefit exceeds the total cost. An outcome is efficient if there is no other outcome that makes someone better off without making someone worse off. Allocative efficiency: is achieved when resources are distributed among alternative uses such that the goods and services produces are those most highly valued by consumers. No rearrangem...
  • Vertical Integration Vertically Integrated
    1,427 words
    What are the arguments for and against vertical integration? A vertical structure consists of an upstream firm such as a manufacturer of an intermediate good, and a downstream firm such as a wholesaler or a retailer. The down stream firm may also be a manufacturer or service provider using the intermediate good as an input. An upstream firm is said to be vertically integrated if it controls (directly or indirectly) all the decisions made by the vertical structure. The vertically integrated profi...
  • Computer Industry Firms Market Microsoft
    3,719 words
    Introduction The world has seen time after time that industries have the potential to change the world. The weapons industry has played a huge part in deciding wars (nuclear arms race), whereas the automotive and airline industries redefined locomotion and made the world a "smaller" place. Towards the end of the last century, it can be argued that no industry redefined and reshaped the world more than the computer industry. Computers are relied on daily in business, educational and entertainment...