How can large companies afford to lower the price of goods in a competitive market?
In what ways might homelessness be categorized as a social problem?
August 5, 2017What are two products that you consider to be in the Growth stage of the Product Life Cycle and why?
August 5, 2017Economies of Scale and Imperfect Competition
How can large companies afford to lower the price of goods in a competitive market? A companys ability to raise its price without losing its entire market is an example of market power. One of the most important of these is economies of scale.
Post by Day 3 a 250- to 300-word statement that addresses the following:
- How do companies develop economies of scale?
- Why do economies of scale often result in monopolistic or oligopolistic markets?
- Explain the role of government in regulating these monopolies or oligopolies?
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 colleagues posting.
- Offer and support an opinion.
- Make a suggestion.
- Expand on your colleagues 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.
