DISCUSSION 3.3-RESPONSES

DISCUSSION 3.3-RESPONSES - Author: Denise Creary Posted...

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Author: Denise Creary Posted date: Saturday, April 3, 2010 6:06:14 PM EDT Last modified date: Saturday, April 3, 2010 6:06:14 PM EDT Total views: 4 Your views: 1 ‹ Previous Post Hide Parent Post Author: Corey Shore Date: Wednesday, March 31, 2010 12:06:03 AM EDT Subject: Advertising/ Corey Shore Brand names have impacts on the markets for products. Industries that demonstrate this are: Monopoly: New York Knicks - there is no other team that can be the New York Knicks Monopolisitc Competition: Apple computers vs. Hewlett Packard computers Oligopoly: Running Shoes - Saucony, Asics, Muzuno, Nike Perfect Competition: Bananas by Chicita The goal of the brand names is to establish a loyal group of consumers. Consumers can rely on a brand for consistent products that you know you can rely on or avoid. The demand curve shifts to the left with more advertising because the market becomes more competitive. Brand names could shift the market to the right. For example high tourist locations charge higher prices and many people are willing to pay the high prices only on what they know will be good. I.E. Mcdonalds or Starbucks in the airport are busier than a local company next to them. The role of advertising is to get people to buy their product no matter how the market is set up. That being said it is more effective in a monopolistic competitive market than in perfect competition such as wheat or other raw products. Corey Corey, I agree brand names is to establish a loyal group of consumers, every time my son sees that McDonald's arch it is over. Den Corey, I also agree that most teams in the NBA are fall in the monopoly category. Very hard for me to believe that another Professional Basketball Team could be created in Cleveland and make it without loss. Jimmy Author: Laurie Klosk-Gazzale Posted date: Friday, April 2, 2010 9:59:36 PM EDT Last modified date: Friday, April 2, 2010 9:59:36 PM EDT Total views: 10 Your views: 2 ‹ Previous Post Hide Paren t Post Author: Kenneth Milko Date: Wednesday, March 31, 2010 10:22:04 AM EDT Subject: Advertising/Ken Milko Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect competition. What is the goal of creating a brand name for each of these market structures? What does
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the brand name do to the demand curve for the product? What is the role of advertising in each of the four market structures? As you answer these questions, illustrate your points with original examples. A monopoly is an industry which there is only one seller. An example of a monopoly are the Personal Seat Licenses that the NY Jets are chargeing to purchase tickets to games. If you want to see a NY Jet game you must purchase a PSL. Monopolists faces a downward- sloping demand curve. This means the team wants to sell more PSLs if has to lower its price. Because the team must lower its price to sell more PSLs, the extra revenue it gets from selling another PSL is less than the price it charges. Then the margial revenue curve lies below its
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This note was uploaded on 04/07/2012 for the course ECONOMICS 101 taught by Professor Dr.edmondson during the Spring '11 term at Thomas Edison State.

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DISCUSSION 3.3-RESPONSES - Author: Denise Creary Posted...

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