Purchase Solution

Microeconomics paper

Not what you're looking for?

Ask Custom Question

I have never had to use this before, but I am running into dead ends.Please help me.
I am working on a essay from questions for school and I need a little help. I have answered most of my paper, but I have 4 that I need help with.
I have chosen Wal-Mart as the company to use in my paper.
1) Is this company operating in a perfectly competitive market? Why or why not?
I believe that this would be no because the prices can change so drasticly due to competition. Is that correct?
2) If the owner of the company asked you to assess whether or not they were using the optimal amount of an input (given a set price for that input), what economic criterion would you use in your analysis?
I am totally lost here. They gave us simulations in class to play with, but I am having trouble understanding how the simulations went along with this question.
3) If you were asked to assess the economic profitability of this company, what economic tools would you use in your analysis?
I am not sure understand what it means by tools. Would this be finacial statements?
4) What is the elasticity of demand for the product (or one of the products) that is produced by the company? Given this elasticity of demand, how should the company price their product in this market? Give justification for your answer.
Would it be strategic pricing to go along with the competition to increase sales?
Thank you for your time and help.

Purchase this Solution
Solution Summary

The response addresses the queries posted in 713 words with references.

Solution Preview

The response addresses the queries posted in 713 words with references.

//Before writing about the economic criteria, it is essential to gain knowledge about the competition that Wall Mart facing is in the market. One should know about the form of competition, which further will assist in analyzing the economic criteria in an effective manner//

Wal-Mart

1.

No, the Wal-Mart is not operating in a perfectly competitive market because in this market, due to the large number of sellers and product homogeneity, Company is not capable of determining price through its own behavior. Another great reason is that there is few number of large producers or competitors of the Wal-Mart I.e. Kmart, Target, etc. And Wal-Mart bases its market policy or strategy ,on the expected behavior of a few close rivals because it knows its Competitors pretty well and keeps a close watch on their actions.

Wal-Mart trades its homogenous product with some close substitutes, in order to defect its Competitors. In Wal-Mart all the pricing decisions depend on the demand conditions, cost conditions and pricing strategies of its Competitors and other various characteristics of non perfect competition like interdependence in decision making, sticky prices and much non-price competition, etc. Exist in the Wal-Mart. Thus, it allows the Company to occupy a dominant position in the Industry (O'Connor, 2004).

//Above is the discussion of competition and its pattern that Wall Mart is facing ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • I have been asked to address a professional meeting and expl

    As an individual and also as a business executive, when prices rise on certain good, including groceries, gasoline, office paper and other office supplies, I conduct a cost-benefit analysis to determine if I should make the purchase.

  • Economics of health care literature research

    Cheryl Provides guidance on preparing a paper on defining the terms economics, supply, demand, macroeconomics, microeconomics, elasticity, inelasticity, and gross national product and how these terms apply to health care.

  • Circular flow, Production Possibilities, and other Concepts

    For this part of your paper, you should include a description of the roles that each participant plays in the economy and how the different sectors interact in the markets.

  • Economics

    260569 Principles of Microeconomics I want to perpare a paper with 1,050-1,400-word paper in which I want to discuss the following:Using APA and at least 3 references THANK YOU SO MUCH!

  • Economics

    Microeconomics states how people deal with money, time and resources. Microeconomics makes us learn how these choices control the supply and demand for commodities and services.

  • Main differences between microeconomics and macroeconomics

    Slide #2: I would include additional factors as found here - http://economics.about.com/od/economics-basics/a/Microeconomics-Versus-Macroeconomics.htm Slide #3: Talk about the goals of microeconomics.

  • Substitution and income effects

    For example, the demand for paper is a derived demand, because it is used in newsprint. The paper must be used for printed newspapers. So if the demand for newspaper declines there will be a decline in demand for paper.

  • economics

    Prepare a 600-word paper in which you: a. Define economics b. Define microeconomics c. Define the Law of supply d. Define the Law of demand e.

  • Differences between microeconomics and macroeconomics

    62096 Comparing Microeconomics and Macroeconomics Discuss the differences between microeconomics and macroeconomics.

  • Question about Microeconomics and Macroeconomics

    413634 Question about Microeconomics and Macroeconomics You are asked to address a professional meeting and explain microeconomics, macroeconomics and their differences. Please answer the following questions: 1.

View More Related Solutions