Reference no: EM131153961
Discussion
Increasing International Competition and Profitability
Economists assume that profit-maximizing firms operate in perfectly competitive markets. However, this assumption does not hold in today's global market, as there are many reasons why markets are not perfectly competitive.
Refer back to the past three weeks, particularly to the principle of comparative advantage and production costs, and review the reasons why companies do not operate in a perfectly competitive market.
Post a 250- to 300-word statement that addresses the following:
• What output strategies might U.S. companies implement to remain profitable when competing with international companies?
• How do market demand, costs, pricing, and competition impact these output strategies?
Read a selection of your colleagues' postings.
Respond by Day 6 to two or more of your colleagues' postings in one or more of the following ways:
• Ask a probing question.
• Share an insight from having read your colleague's posting.
• Offer and support an opinion.
• Make a suggestion.
• Expand on your colleague's posting.
Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and the insights you gained as a result of the comments your colleagues made.
Be sure to support your work with specific citations from the Learning Resources and any additional sources.
Learning Resources
Required Resources
Readings
• Frank, R. H., & Bernanke, B. S. (2010). Principles of microeconomics, brief edition(2nd ed.). New York, NY: McGraw-Hill/Irwin.
o Chapter 5, "Perfectly Competitive Supply" (pp. 127-158)
Chapter 5 gives you insight into the supply side of the market. The chapter also revisits the cost-benefit principle from the seller's perspective and examines the factors that a rational seller would consider while marketing a product.
Focus on the graphic interpretations of individual and market supply curves. Review the law of supply, and study the various determinants of supply.
o Chapter 6, "Efficiency, Exchange, and the Invisible Hand in Action" (pp. 159-188)
Chapter 6 introduces the concept of the Pareto efficiency of market equilibrium. The chapter also explains how market equilibrium prices can help in attaining the largest possible total economic surplus. In addition, this chapter focuses on the central role of economic profit and the invisible hand theory of the market.
Focus on the cost of preventing price adjustments and the marginal cost pricing of public services. In addition, study the different graphic interpretations of economic surplus.
Media
• Kahn Academy. (2014d). Economic profit versus accounting profit [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/economic-profit-tutorial/v/economic-profit-vs-accounting-profit
Note: The approximate length of this media piece is 8 minutes.
• Kahn Academy. (2014j). Marginal cost and average total cost [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/average-costs-margin-rev/v/marginal-cost-and-average-total-cost
Note: The approximate length of this media piece is 8 minutes .
• Kahn Academy. (2014f). Fixed, variable, and marginal cost [Video file]. Retrieved fromhttps://www.khanacademy.org/economics-finance-domain/microeconomics/firm-economic-profit/average-costs-tutorial/v/fixed--variable--and-marginal-cost
Note: The approximate length of this media piece is 12 minutes.
Optional Resources
• Frank, R. H., & Bernanke, B. S. (2011). Principles of microeconomics, brief edition (2nd ed.) [Supplemental material]. Retrieved from https://highered.mheducation.com/sites/0077316770/student_view0/index.html
What starbucks strategies are best
: "What Starbucks Strategies Are Best? There is only so much revenue that coffee, lattes, and pastries can bring in, so Starbucks performed SWOT and QSPM analyses and decided to spend millions on three new strategies: (1) provide beer and wine, (2) pro..
|
What happened to the per worker productivity in turkey
: What happened to the per worker productivity in Turkey? What happened to the steady state per work capital level in Turkey? What happened to the golden rule per work capital level in Turkey?
|
Concept of collective sense-making processes
: Applying the concept of collective sense-making processes, analyze the Blue vs. Gray Case Study. What are the important sense-making processes that made the implementation of change challenging and difficult? What could have been done to prevent or b..
|
Specific demands associated with its external environment
: Describe the linkage an Internet-based company (e.g. Ebay) has with its environment. Be sure to include in your description an overview of the firm's structure and operations in response to specific demands associated with its external environment.
|
What output strategies might us companies implement
: What output strategies might U.S. companies implement to remain profitable when competing with international companies? How do market demand, costs, pricing, and competition impact these output strategies?
|
Calculate the cpk value
: Big Turkey Burger Farms (BTBF) produces a large turkey burger that is world famous. This burger is known not only for its quality, but also its size and consistency. They produce a turkey burger that on average is 12.10 ounces large (with a standard ..
|
Describe economic principle that company executives consider
: Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products
|
Set of ordered pairs
: Write, as a set of ordered pairs, a function f that is a bijection from V1 to V2, satisfying the following condition: if x and y are elements in V1 such that {x,y} is in E1, then f(x) and f(y) are elements in V2 such that {f(x),f(y)} is in E2, and..
|
Most of what is written about leadership
: Most of what is written about leadership has been written by western scholars and practitioners—mostly from the United States. Thus, what we have studied in this module so far reflects western assumptions and values about how to improve leadership pe..
|