Select a new, realisticgood or service for an existing industry, preferably an industry youcurrent work in or one in which you are interested in working.
Develop a 1,400-wordevaluationof pricing strategies available producers of your selectedproduct. This will include statements about the market structure and theelasticity of demand for the product, based on text book principles andreal world products under development.
- Identify the market structure of the industry (monopoly, oligopoly, monopolistic competition, pure competition).
- Determine elasticity of demand for various quality ranges of theproduct based on textbook theory and judgments about the degree ofluxury vs. necessity represented by various brands (e.g. a luxury car vsan economy car).
- Determine how pricing relates to elasticity of demand for competing models.
- Explain how changes in the quantity supplied as a result of pricingdecisions might affect the company’s marginal cost, marginal revenue,and market share as production volume rises. What reaction might beexpected by other producers if one producer changes its pricingstrategy?
- Determine strategies that a company might use to develop productdifferentiation and market segmentation. What alternative non-pricingstrategies are available? What alternative non-pricing strategies can beused to increase barriers to entry?
- Discuss how producers might alter the mix of fixed and variable costs to support their pricing strategy.
Format the assignment consistent with APA guidelines.
