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Define executive decision concerning pricing, product design

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The simple case of pricing with market power assumes (a) all consumers are charged the same price, (b) the firm sells one product, (c) demand exists in one time period, and (d) competitors do not pursue pricing games. Economists insist on reviewing what happens as each assumption is relaxed one at a time, However, it is clear that in real world all four relaxed simultaneously. Why does economic analysis insist on such unrealistic analysis?

The market environment heavily influences corporate decision-making ability. Discuss the differences in executive decisions concerning pricing, product design, and advertising between a company that exists in a perfectly competitive market and a company that lives a monopolistically competitive market.

Reference no: EM13918996

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